Important changes to the Child Tax Credit were recently made by the Internal Revenue Service.

Advance Child Tax Credit payments began July 15th, helping families get advance payments of the credit. The IRS will pay half the total amount in advance monthly payments with citizens claiming the other half when filing a 2021 income tax return. H&R Block Area Manager for Washington, Sigourney and Columbus Junction Terri Bain explains the changes from the Child Tax Credit to the Advance Child Tax Credit, “The original Child Tax Credit is a non-refundable credit. You can get up to $2,000, it’s not a direct dollar for dollar to you in your refund, but it reduces your tax amount by that $2,000. And then anything over and above that, dependent on where your income falls, it would turn into a refundable portion and that is what we call the advance child tax credit.”

Those eligible for the advance child tax credit must have a qualifying child under the age of 18 at the end of 2021 with a social security number, who is a U.S. Citizen, or resident alien.  For 2021 the credit is increased from $2,000 per qualifying child to $3,600 children five and under and $3,000 for children six through 17.Payments are generally made automatically to those eligible based on their 2020 or 2019 filed tax return. For more information visit here.