The federal government recently increased the amount that parents and/or guardians can receive toward the child tax credit.

Certified Public Accountant with Henkel and Associates Tom Kennedy says the Advanced Child Tax Credit is for those individuals that filed income tax returns for 2019 or 2020 can receive $3,600 for each dependent from zero to five years old and $3,000 for each dependent that is six to 17 years old. Kennedy talks about how the payments will be handled for the credits.

“They’re only advancing half the credit. So, $3,600, you’re only going to get advanced $1,800 divided by six months, I think there is six payments that they’re doing it. Do it’ll be $300 per month per child.”   

Kennedy notes that you can change the number of dependents via a child tax credit portal on the IRS website.

“You can change your dependents up or down, change your income up or down, to get the advanced payments, and then that’ll take effect the next payment you get off of that.”

The first payments started on July 15th and will be made on the 15th every month for the next five months. Kennedy adds, the payments are automatic, depending on how you set up to receive a refund based on your filed income tax return. However, Kennedy says you can opt off of receiving the monthly payments, but that needs to be done through the IRS portal. Click the link below for more information about the advanced child tax credit.

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021