If you do not have dependent children, please disregard this email. If you have dependent children, then please read this email very carefully.
What is the Child Tax Credit?
The American Rescue Plan Act expanded the Child Tax Credit (CTC) for 2021. In prior years, the CTC was $2,000 per qualifying child under the age of 17. In 2021, eligible taxpayers will receive up to $3,000 per qualifying child between the ages of 6 and 17, with up to $250 per child received in monthly prepayments. Taxpayers with children under the age of 6 will be eligible for a $3,600 credit per qualifying child with up to $300 per child received in monthly prepayments.
Who qualifies to receive the advance payments?
- Taxpayers who filed a 2019 or 2020 tax return and claimed the child tax credit
- Taxpayers with a qualifying child under the age of 18 at the end of 2021
Taxpayers who meet the first two criteria and the following income requirements:
- Single filers with income less than $75,000 (income between $75,000-$107,000 may receive a reduced amount)
- Married filing jointly filers with income less than $150,000 (income between $150,000-$182,000 may receive a reduced amount)
- Head of household filers with income less than $112,500 (income between $112,500-$144,500 may receive a reduced amount)
*Please note that if you have a qualifying child, but your income exceeds the income thresholds above, it is our understanding that you will not receive advanced payments.