Resources from H&R Block as 36M Families Begin Receiving Child Tax Credit Payments on July 15
H&R Block’s online resource helps families understand what to expect from the expanded tax credit and advance monthly payments
Nearly 90% of children in the U.S. are eligible for the expanded child tax credit included in the March 2021 American Rescue Plan. Not only do more children qualify and the credit amounts are boosted, but families will also receive six monthly payments totaling half of their credit amount, beginning July 15.
To help everyone understand what the credit means for them, who is eligible, and how much a family might expect to receive, H&R Block created an online resource at hrblock.com/CTC.
“The expanded child tax credit will provide more money to more families, and we want to help answer the most pressing questions people have,” said Bob Moretti, H&R Block’s senior vice president of U.S. retail operations. “By visiting H&R Block’s online resource page, you’ll get answers to common questions including where the advance payments will go, how to calculate how much you might receive, and get direction on how to update your information with the IRS.”
More money to more families
Previously, families were eligible for up to $2,000 per child from the credit. Now families will get up to $3,600 per child for children ages five and younger. For children ages six to 17, families will get $3,000 per child. Eligible families will get an advance on half of their total credit as monthly payments that run July 15 through December 15.
Most people don’t have to do anything to receive payments
Families who are eligible for the advance payments should receive a letter from the IRS with an estimate of what they’ll receive. For most, the monthly payment will go to the bank account where you received your 2020 tax refund (or 2019 if that’s the last time you filed). If there wasn’t a bank account tied to your filing, the payment will be sent to the physical address on your tax return. For H&R Block clients who received their most recent refund on the Emerald Card, the payment will be sent to their card account.
If you don’t want to receive the advance payments, you can use the IRS Child Tax Credit Update Portal to opt-out of the advance payments. Later this summer, you’ll be able to use the IRS portal to update personal information that might impact payment amounts, such as the birth of a child or marital status.
If people haven’t yet filed their 2019 or 2020 taxes and think they might qualify for the new child tax credit, they should file as soon as possible so the IRS has current information. This will help ensure they receive any eligible advance payments.
Expanded child tax credit connected to tax return filed next year
When you file your taxes next year, the amount you received in advance payments will be subtracted from your full child tax credit. If you received an overpayment of your credit due to the advance, that amount may reduce your refund or be added to your balance due.
H&R Block is here to help everyone understand the new child tax credit advance payments. Block’s child tax credit online resource is updated as new information is released so families can navigate both the credit and advance payment details.
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