2021 Advance Child Tax Credit Information
The new Advance Child Tax Credit 2021 monthly payments are scheduled to start going out next month, on July 15th. Receiving these advance payments will reduce taxpayers’ credits traditionally on next years tax return filings. We have been getting quite a few questions on how to assist taxpayers wanting to opt-out of receiving these payments, and the IRS just released that the tool to facilitate the management of these payments is now available.
There are 3 tools now available to assist your clients manage their Advance Child Tax Credit payments:
Eligibility Calculator: allows taxpayers to go through a series of Q&As to determine if they qualify for these advanced credit payments. https://www.irs.gov/…/advance-child-tax-credit…
Update Portal: allows taxpayers to opt-out of the payment if they prefer to delay receiving these credit payments until they file their tax return in 2022. https://www.irs.gov/credit…/child-tax-credit-update-portal
Non Filer Tool: allows individuals who do not file tax returns to opt-in for these advance monthly payments. https://www.irs.gov/…/child-tax-credit-non-filer-sign…
The Update Portal will soon allow for the following functionality if not already available:
-Opt-out of receiving these monthly payments in advance
-Update direct deposit banking information
-Update mailing address
-Update family size and status
-Update projected changes in income
Be aware that taxpayers that do not already have an IRS account will need to pass identity verification to access and use these tools.
Posted: June 23, 2021