May 21, 2021 | in Tax

Monthly Payments of Refundable Child Tax Credit. Payments to begin in July.

The first monthly payment of the expanded and newly-advanceable child tax credit (CTC) will be made on July 15. The increased CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday. Families who receive the credit by direct deposit can plan their budgets around receipt of the benefit. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above. 

Eligible taxpayers who do not want to receive advance payment of the 2021 CTC will have the opportunity to decline receiving advance payments. Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children. More details on how to take these steps will be announced soon

The IRS released Rev. Proc. 2021-24, which includes instructions for individuals not otherwise required to file 2020 Federal income tax returns to file returns to receive CTC, 2020 recovery rebate credit payments, additional 2020 recovery rebate credit payments and third-round economic impact payments. The first procedure permits these individuals to file simplified returns. The second procedure enables these individuals to file complete returns electronically even if they have zero adjusted gross income. 

For paper filing, indicate “Rev. Proc. 2021-24” at the top of the return. When e-filing, enter $1 as taxable interest on Line 2b of the form; $1 as total income on Line 9 of the form; $1 as AGI on Line 11 of the form; and $1 as itemized deductions on Lines 7 and 8 of Schedule A (Form 1040-NR) and Line 12 of Form 1040-NR (Form 1040-NR filers only).

NAPT – Tax Pro Weekly

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