After the Biden administration, the Internal Revenue Service changed the child tax credit and made it possible for taxpayers to receive advanced payments.
The same as credits like the premium tax credit, taxpayers are now eligible for receiving advanced child tax credit payments for every dependent that they qualify. The child tax credit payments started the first time in July of 2021 and will continue for the remainder of the calendar year. There will be a total of six separate payments, handing half of the credit amount to taxpayers.
The advanced child tax credit payment dates are as follows so you know when the next payment is sent to accounts.
- July 15th – Payment 1
- August 13 – Payment 2
- September 15 – Payment 3
- October 15 – Payment 4
- November 15 – Payment 5
- December 15 – Payment 6
Whether you want to see your payment status or want to unenroll from the advanced child tax credit payments, you can handle everything through the Child Tax Credit update tool.
We’ve covered how you can unenroll or enroll if you automatically haven’t enrolled for the advanced payments. If you weren’t enrolled automatically and you signed up for the payments at a later date, you’ll receive the payments you’re behind. For example, if you enroll for the CTC payments in October, you will receive July, August, and September payments, as well as the payment for October if it’s later than the 15th of the month.
Consider enrolling in CTC payments
You might want to consider enrolling in advanced CTC payments as you’ll have to repay the IRS if you owe taxes when you file your federal income tax return. Similar to the advanced premium tax credit repayments, you’ll have to repay the excess you received from the IRS.
Since this can increase your tax liability and may face you with underpayment penalties, it’s a major consideration to keep in mind. You wouldn’t want to pay in extra just to keep half of your tax credit you would receive in full when you file your federal income tax return.