Advance payments of the child tax credit will be sent to eligible taxpayers beginning July 15, 2021 and will be sent monthly through December, 2021.
How are advance payments calculated?
The IRS will determine the amount of the advance payments by estimating the amount of the Child Tax Credit that will be claimed on a taxpayer's 2021 tax return. The estimate of the 2021 Child Tax Credit is based on the information included on the taxpayer's 2020 federal income tax return (or the taxpayer's 2019 tax return if no tax return has been filed for 2020).
The total of the advance Child Tax Credit payment amounts will will equal half of the amount of the taxpayer's estimated 2021 Child Tax Credit. The estimated amount will be divided in to 6 monthly advance payments to the taxpayer.
Generally, the taxpayer will receive:
- $300 for each qualifying child age 5 or under. ($3,600 divided by half, which is $1,800. Six monthly payments of $300 for a total advance payment of $1,800.
- $250 for each qualifying child ages 6 to 17. ($3,000 divided by half, which is $1,500. Six monthly payments of $250 for a total advance payment of $1,500.