Question

Child tax credit

Forum|Forum|4 years ago
July 21, 2021
1 reply
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In July I received my first child tax credit in my bank account. Will the total amount I receive in 2021 lower what I can deduct on my 2021 return?

Loretta P

Yes because you are receiving 50% of what you would claim on your 2021 return early as monthly payments, the amount you receive on your 2021 return will be lowered.

Maximum amount of the CTC

$3,600 for children ages 5 and under at the end of 2021
$3,000 for children ages 6 through 17 at the end of 2021

Early payments from the IRS of 50% of the estimated amount of the Child Tax Credit that a taxpayer may properly claim on their 2021 tax return during the 2022 tax filing season

The 50% of estimated CTC will be spread out in payments from July to December

This is a link to the IRS website FAQ page providing answers on how the ACTC is being calculated: https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-c-calculation-of-the-2021-child-tax-credit

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