If you claimed a dependent child in 2020, you can probably not only expect a higher child tax credit for 2021, but you may also start getting advanced monthly payments beginning in July of this year. Here’s what you should know:

• The credit has been increased to $3,000 per child ages 6 to 17 and $3,600 per child under 6.
• The full credit is refundable as opposed to previous credits where only $1,400 per child was refundable.
• You can expect to receive half of your anticipated credit in advanced monthly payments beginning in July 2021 through December 2021.
• You will claim any remaining credit on your 2021 tax return.
• The increased credit will begin to phase out for taxpayers with an AGI at or above the following amounts:
• $75,000 for single taxpayers
• $112,500 for head of household
• $150,000 for joint taxpayers

Even if your income does not qualify you for the increased credit, you may still qualify for the original $2,000 child tax credit. If you are concerned about having to pay back the child tax credit due to a change in income, you can elect to receive your full credit on your return and opt-out of the advanced payments by using the IRS online portal scheduled to be launched in July 2021.

Get a sneak peek at your expected monthly payments using our 2021 Child Tax Calculator!

IOOGO Tax will be watching closely for any updates. Be sure to follow us for the latest news.