How Your Children Will Make You Some Extra Money On This Year's Tax Refunds!

Your kids may have spent the past year driving you absolutely bonkers, but this summer having them around is about to pay off….in a big way! There have been some really important changes to the Child Tax Credit (CTC) this year that may allow you to receive advance payments starting THIS SUMMER! And because we know you don’t want to pour over all the resources to find out how you benefit from this change, we will do it for you!

For the 2021 tax year only, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6-17, and receive $3,600 per qualifying child under age 6. Previously, families were receiving only $2,000 per qualifying child under the age of 17, so this is potentially a huge chunk of money for your family, and you will have the ability to access it much earlier than the rest of your returns.

But don’t get too excited because these increased amounts are reduced for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

These advance payments will be coming automatically as soon as July and run through December to all those eligible, and will be estimated using your 2020 returns, or 2019 returns for those of you who have not yet filed. If you have opted for direct deposit be sure to check your account periodically to ensure it has been deposited. This is the fastest way to receive your money, and we encourage you to enroll in direct deposit!

The IRS is urging everyone to file their 2020 taxes in order to receive the correct amount in your advance, and ensure they are receiving any other credits you are eligible for. 

Because this money comes automatically, there is nothing you have to do other than file your taxes for 2020, but in the event you do not want this money in the form of an advance, you will have the option to request the IRS hold onto the money and then receive it with the rest of your returns. You may want to do this if you alternate years claiming your children. Stay tuned on how to do this, as the IRS will be releasing details soon!