Frequently Asked Questions

The IRS is SWAMPED.  Link for more information https://www.forbes.com/advisor/taxes/why-is-my-refund-taking-so-long/

It's complicated...Link for detailed information

https://www.cbsnews.com/news/child-tax-credit-payment-missing-wrong-amount/

Advanced Child Tax Credit (ACTC).

1. What is it?
   1. This credit is for taxpayers that claim a dependent on their tax return
2. Is this new?
   1. No, it has been changed and they are sending part of it out in advance this year. This is a pilot program that they may or may not continue in the future
3. How much is the credit?
   1. $3,600 for each child under age 6 as of 12/31/2021
   2. $3,000 for each child over age 6, but under age 17 as of 12/31/2021
4. When is this credit getting paid out?
   1. The payments are expected to start in July or August 2021
5. Can this amount be reduced?
   1. Yes, the credit will slowly phase out based on your income and filing status; this is the 1st phase out and can reduce the ACTC to $2,000 per child ($166.67 per month)

i. Single filers start phasing out at $75,000 AGI

ii. Head of Household filers start phasing out at $112,500 AGI

iii. Married Filing Jointly filers start phasing out at $150,000 AGI

1. This can be further reduced with a second phase out; this is the 2nd phase out and can reduce the ACTC to $0 per child

i. Single and Head of Household filers will begin phasing out at $200,000 AGI

ii. Married Filing Jointly filers will begin phasing out at $400,000 AGI

1. How much is the ACTC?
   1. $300 per month for each child under age 6 as of 12/31/2021
   2. $250 per month for each child over age 6, but under age 17 as of 12/31/2021
2. Is this income to me?
   1. No, it is a prepayment of the child tax credit that you would normally claim on your return.
3. Will I have to pay it back?
   1. Maybe, if you claimed dependents for 2020, but will not claim them for 2021, then your refund will be reduced by any ACTC payments that you received
4. Can I opt out of the payments?
   1. Yes, if you are no longer claiming a dependent that you did for 2020, opting out will prevent you from receiving the ACTC and having your refund reduced by it
5. How can I opt out?
   1. You will need to follow the prompts at the following site: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
6. I didn’t claim a dependent for 2020, but I will for 2021; how can I opt in?
   1. You can opt in following this link: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

For more information, please follow this link: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

For online tool links, please follow this link: https://www.irs.gov/pub/irs-pdf/p5534e.pdf