Child Support and Child Tax Credit Payments

Child Support and Child Tax Credit Payments

July 16, 2021 | By Beth Reineke

As part of the $1.9 trillion American Rescue Plan of 2021, signed into law in March of this year, roughly 39 million families will begin receiving periodic advance payments on their Child Tax Credit of up to $300 per month per child. These monthly payments are scheduled to begin on July 15. For 2021 only, a parent can receive up to $3,600 per child under six years old, and $3,000 per child between the ages of 6 and 17 years old. Previously, the amount was $2,000 for all eligible ages and the credit was not paid in advance. To determine eligibility for the credit, the IRS will use your 2020 federal tax return. That return specifies your income, the social security numbers for your children, and which party is claiming the exemption for the children. The advanced Child Tax Credit payments are intended to be half of an eligible household's total credit. The remaining half will be claimed as part of your 2021 tax return in the raditional way. FOR DIVORCED PARENTS, the parent who claimed the Child Tax Credit for 2020 may not be the same parent who is entitled to claim the credit for 2021. The IRS is working to set up a website that will enable parents to change this type of key information, so the right parent receives the Child Tax Credit checks for 2021. The American Rescue Plan currently only applies to 2021. If you have questions about your rights, you should consult with your attorney and/or your CPA.