Child Tax Credit Advance
Recently many news outlets have been reporting a new “stimulus payment” coming in July. This has caused some confusion in the tax preparer community. There are no current plans for a fourth economic impact payment (EIP), but instead, the press is calling the upcoming advance child tax credit (CTC) payments a “stimulus payment.”
Earlier this week, the IRS announced it started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly CTC payments starting in July. Families who are eligible for advance CTC payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.
The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17. The IRS will issue payments on July 15, Aug. 13, Sept.15, Oct. 15, Nov. 15 and Dec. 15.
For those who do not want to receive advance CTC payments, it’s anticipated instructions on how to unenroll from these payments will be available by the end of June.
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