Accept Monthly Child Tax Credit Payments, or Wait?
Written by dariandudrick on June 15, 2021
The IRS will begin issuing child tax credit payments next month.
This year, families will receive as much as $3,600 per child under 6 or $3,000 per child under 18. Half the total will be paid by the IRS in advance monthly payments beginning July 15, while the other half will be claimed when filing income taxes during tax year 2021 only.
However, families need to decide whether to receive the monthly payments or get one lump sum at tax refund time.
For families that usually owe money to the IRS at tax time, some suggest they might want to opt out of the monthly child tax credit payments. To opt out, families need to utilize one of the IRS child tax credit portals, which should be live by July 1.
Regardless, people are encouraged to seek advice from their tax professional.