What you need to know about the Child Tax Credit
PRESQUE ISLE, Maine (WAGM) - Payments start next week for the advance child tax credit.
Payments under the expanded version of the child tax credit will soon be headed to bank accounts. Everyone eligible is automatically enrolled for the advance child tax credit.
“The credit is $3600 or $3000 depending on what the child’s age is. You’re supposed to get half of that as an advance...Receiving this advance will affect or potentially affect the size of your refund when you get your tax return. Because if you’re used to getting a $2000 tax credit, you’re not going to have it anymore, that credit will be reduced by whatever you’ve received in advance,” said Tim Poitras, a CMP at Chester M Kearney.
Parents of children five years old and younger qualify for an advance of 300 a month. For children aged 6 to 18, you will receive 250 dollars a month. Payments begin July 15th and will end December 15.
“The one thing that’s is new is there’s no double dipping this time,” said Ginger Nelson at H&R Block.
If two parents are filing separate taxes and both claim the child or children as a dependent, one will have to pay back the extra.
“There could be repercussions if you’re not claiming the same children that you did this previous tax season.”
While the deadline to opt out of the july payment has passed, you can still opt out for next month and the rest of the year by going to the IRS website before July 15. Both spouses have to unenroll individually. Nelson also says that if you didn’t file your 2019 or 2020 return, you can use the non-filer tool on the IRS website to file for the advance.
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