National Child Care Members/Advocates and Business Affiliates:
We want to share with you the latest information as it relates to the Advance Child Tax Credit 2021. As you know, these payments are an expansion of the Child Tax Credit and allow parents to get up to fifty percent of their credit in advance by the 15th of each month, between July 15 through December 15, 2021. The remaining portion of the credit can be claimed when the parent files their tax return next filing season. This money can quickly add up to a significant amount and can help parents who have been struggling financially.
Although the IRS has already issued advance payments to over 39 million households based on information provided on their 2020 tax returns, there may be some families missing out, because the IRS does not have the most current information available, such as mailing address, or financial account information to receive the convenience of direct deposit. As a result, this week’s message focuses on the new address feature on the Child Tax Credit Update Portal, which is available on irs.gov. Generally, updates entered into the portal can take up to seven calendar days to be reflected on an account. As a result, if a parent would like their advance payment mailed to their new address in time for the fourth installment (October 15 payment), then the information must be entered into the portal no later than October 4, 2021.
Sadly, since the start of the pandemic there has been an increase in tax scams involving Economic Impact Payments, unemployment compensation, and now advance child tax payments.
Please be vigilant!
Thank you to Filomena Trujillo-Mealy, IRS Communication & Liaison, for this info.