FAQ on Advance Child Tax Credit Payments Posted to IRS Website

2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic A: General Information

Q A1: What are advance Child Tax Credit payments?

A1: Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season. If the IRS has processed your 2020 tax return or 2019 tax return, these monthly payments will be made starting in July and through December 2021, based on the information contained in that return.

Note: Advance Child Tax Credit payment amounts are not based on the Credit for Other Dependents, which is not refundable. For more information about the Credit for Other Dependents, see IRS Publication No. 972, Child Tax Credit and Credit for Other Dependents PDF.

For more information about how your advance Child Tax Credit payments are calculated, see Topic D: Calculation of Advance Child Tax Credit Payments.

Q A2: What do I need to do to receive advance Child Tax Credit payments?

A2: Generally, nothing. If you are eligible to receive advance Child Tax Credit payments based on your 2020 tax return or 2019 tax return (including information you entered into the Non-Filer tool for Economic Impact Payments on IRS.gov in 2020), you generally will receive those payments automatically without needing to take any additional action. You must take action if you have not filed your 2020 tax return or 2019 tax return. In June, the IRS will make available an online Non-Filer tool that will allow individuals who weren't required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return will allow eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Taxpayers also can visit IRS.gov/filing for details about:

• IRS Free File

• Free File Fillable Forms

• Child Tax Credit Non-filer Sign-up Tool, or

• Finding a trusted tax professional

The fastest way to get advance payments is to file your tax return electronically and provide information about your financial account so that you can receive your payments by direct deposit. You can use a bank account, prepaid debit card, or mobile app for your direct deposit and will need to provide routing and account numbers.

For more information regarding eligibility and how advance Child Tax Credit payments are disbursed, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit and Topic E: Advance Payment Process of the Child Tax Credit.​

Q A3: Do I need income to receive advance Child Tax Credit payments?

A3: No. Even if you have $0 in income, you can receive advance Child Tax Credit payments if you are eligible.

For information regarding eligibility, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit.

Q A4: Where can I get help completing my 2020 tax return if I can't do it myself?

A4: If you cannot or choose not to use the Non-Filer tool, IRS Free File, or Free File Fillable Forms to file your 2020 tax return, there are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and others who can assist you in filing your return. For more information about these and other return preparers who might be right for you, visit Need someone to prepare your tax return?.

Q A5: What if I do not want to receive advance Child Tax Credit payments?

A5: If you prefer not to receive monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, or you know you will not be eligible for the Child Tax Credit for your 2021 tax year, you will be able to unenroll through the Child Tax Credit Update Portal (CTC UP). CTC UP will be available in June and will allow you to unenroll before the first advance Child Tax Credit payment is made. You will not be able to unenroll before the portal is open.

For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

Q A6: When will the IRS begin disbursing advance Child Tax Credit payments?

A6: The IRS will begin disbursing advance Child Tax Credit payments on July 15. After that, payments will be disbursed on a monthly basis through December 2021.

For more information regarding how advance Child Tax Credit payments are disbursed, see Topic E: Advance Payment Process of the Child Tax Credit.

Q A7: Will the IRS contact me about advance Child Tax Credit payments before they are disbursed?

A7: Yes. In June, the IRS will send you Letter 6417. This letter will inform you of the amount of your estimated Child Tax Credit monthly payments. This letter will also indicate where you can find additional information about advance Child Tax Credit payments.

Q A8: How do I qualify for advance Child Tax Credit payments?

A8: You qualify for advance Child Tax Credit payments if you have a qualifying child. Also, you — or your spouse, if married filing a joint return — must have your main home in one of the 50 states or the District of Columbia for more than half the year. Your main home can be any location where you regularly live. Your main home may be your house, apartment, mobile home, shelter, temporary lodging, or other location and doesn't need to be the same physical location throughout the taxable year. You don't need a permanent address to get these payments. If you are temporarily away from your main home because of illness, education, business, vacation, or military service, you are generally treated as living in your main home.

For more information regarding eligibility for advance Child Tax Credit payments, and the Child Tax Credit generally, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit.

For information on how the amount of your Child Tax Credit could be reduced based on the amount of your income, see Topic C: Calculation of the 2021 Child Tax Credit.

Q A9: Will receiving advance Child Tax Credit payments cause a delay in my refund when I file my 2021 tax return next year?

A9: No.

Q A10: Are advance Child Tax Credit payments taxable?

A10: No. Advance Child Tax Credit payments are not income and will not be reported as income on your 2021 tax return. Advance Child Tax Credit payments are advance payments of your tax year 2021 Child Tax Credit.

However, the total amount of advance Child Tax Credit payments that you receive during 2021 is based on the IRS's estimate of your 2021 Child Tax Credit. If the total is greater than the Child Tax Credit amount that you are allowed to claim on your 2021 tax return, you may have to repay the excess amount on your 2021 tax return during the 2022 tax filing season. For example, if you receive advance Child Tax Credit payments for two qualifying children properly claimed on your 2020 tax return, but you no longer have qualifying children in 2021, the advance Child Tax Credit payments that you received based on those children are added to your 2021 income tax unless you qualify for repayment protection. For more information regarding your eligibility for repayment protection, and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 tax return, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.

For this reason, you may wish to unenroll from receiving advance Child Tax Credit payments. You will be able to unenroll through the Child Tax Credit Update Portal (CTC UP), which will become available in June. For more information regarding the CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

Q A11: Will the IRS send me a letter of my advance Child Tax Credit payments to help me claim the correct Child Tax Credit amount on my 2021 return next year?

A11: Yes. In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

For more information regarding this letter and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 return, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.

Q A12: Will advance Child Tax Credit payments affect any government benefits that I receive?

A12: No. Advance Child Tax Credit payments cannot be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs also cannot count advance Child Tax Credit payments as a resource for purposes of determining eligibility for at least 12 months after you receive it.

Q A13: Can I call the IRS or my tax software company or bank to update my bank account information for advance Child Tax Credit payments?

A13: The IRS will provide on IRS.gov a Child Tax Credit Update Portal (CTC UP), which will allow you update information with the IRS, including your bank account information.

CTC UP will be available on IRS.gov starting in June, and initially will only allow you to elect not to receive advance Child Tax Credit payments. The IRS will add features to CTC UP later this year, which are described in QF-1, below.

For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

Q A14: How do I avoid scams relating to advance Child Tax Credit payments?

A14: The IRS urges everyone to be on the lookout for scam artists trying to use advance Child Tax Credit payments as a cover for schemes to steal personal information and money. The IRS doesn't initiate contact by email, text messages, or social media channels to request personal or financial information — even information related to advance Child Tax Credit payments. Also, watch out for emails with attachments or links claiming to have special information about advance Child Tax Credit payments or refunds of the Child Tax Credit.

If you receive a suspicious IRS-related email, see Report Phishing and Online Scams for additional information.

Q A15: I want to help spread the news about the advance Child Tax Credit payments within my community. How can I do that?

A15: The IRS will be releasing additional materials and information that can be easily shared by social media, email, and other methods. The IRS urges employers, community groups, non-profits, associations, education groups, and anyone else with connections to people with children to share this critical information about advance Child Tax Credit payments and the Child Tax Credit expansions for the 2021 tax year.

Page Last Reviewed or Updated: 14-Jun-2021