June 9, 2021
Did you know you may be eligible for a proactive receipt of the Child Tax Credit? The American REscue Plan implemented in March 2021 has made some important changes regarding the credit. As long as you fall within certain income limitations, you are eligible to receive half of the annual credit in the form of advance monthly payments from the IRS. The maximum annual credit is $3,000 per child aged 6 to 17, and $3,600 per child under the age of 6. Typically, these payments have only been applied as a credit when filing your end of year taxes, so it is a significant change for the IRS to proactively send payments to those eligible. These payments will begin to be distributed in July 2021 and will be sent out monthly until the end of the year. Keep an eye out for a letter from the IRS regarding your eligibility and steps you need to take if you do not want to receive the advance payments. To learn more about the Child Tax Credit and other important law changes this year that might affect you, contact us today!
Carol Dixon, CFP® & Kevin DeRosa, CRPC®