Child tax credit: IRS mails letters to taxpayers about advanced payments
COLUMBUS, Ohio (WCMH) — The Internal Revenue Service has sent letters to remind taxpayers about the child tax credit early payments.
The letter is dated June 4, 2021, and reminds people they may be eligible for advanced monthly installments and the taxpayer will not need to take any action to receive the money.
This program is part of The American Rescue Plan signed into law in March. It provides $3,600 per child 5 and younger, and $3,000 for children between the ages of 6 and 17. The previous child tax credit topped out at $2,000 and was only offered to families with IRS income tax obligations.
Eligibility for the expanded credit, which is fully refundable for 2021, phases out based on one’s income. The maximum credit is available to taxpayers with a modified adjusted gross income of:
- $75,000 or less for a single taxpayer
- $112,500 or less for single, head of household
- $150,000 or less for married couples filing a joint return and qualifying widow(er)s
The letter’s final paragraph instructs people who do not want the advanced payment to “unenroll” at https://www.irs.gov/childtaxcredit2021. This website will be updated towards the end of June.