The IRS began issuing the Advance Child Tax Credit payments on July 15, 2021. The payments are 50 percent of the estimated amount of the Child Tax Credit you will qualify for on your 2021 tax return. The payment is based on either your 2020 or 2019 tax return that has already been processed by the IRS. If you receive advance payments that you do not qualify for, you may be required to repay them to the IRS as an additional tax with your 2021 tax return.
If you prefer not to receive the advance payment, or if your circumstances have changed since 2019 or 2020 and you know you will not be able to claim either a full or partial Child Tax Credit on your 2021 tax return, you need to either opt out of receiving advance payments or update your information with the IRS as soon as possible. To do this, you will need to go to the Child Tax Credit Update Portal – https://www.irs.gov/credits-d
If you have previously registered for online services with the IRS, you will need your username; if not you will need a photo ID to create an account with.
Please contact us at 716-854-5034 or info@bspcpa.com if you have any further questions. If you need assistance with understanding your personal or business tax situation, please let us know.