Monthly Child Tax Credit Payments
2021 child tax credit payments are expected to begin in early July. If you want to help the IRS, and yourself (in order to get them slightly faster than average), then filing early is a good idea. Between July and December 2021, you can expect half of your total credit amount to be paid on a monthly basis. The other half will be claimed on your 2021 tax return.
The IRS has to look at either your 2019 or 2020 tax returns, as it did for the third round of stimulus checks. Then, they have to calculate the amount you’ll get. Of course, if you have not filed your 2020 tax returns, then they’ll be forced to look at the ones from 2019. See where this is going?
But here’s the thing. If you had a baby in 2020, this won’t be reflected on your 2019 return. Filing your 2020 return faster will give the IRS all the information they need in order to up the amount of your advance child credit payment. Though the IRS also has a portal for new parents to update their marital status, income and number of children, fimply filing your return ahead of time will be easier- both for you and the agency.
Not only that, but the IRS also expects this to be a bumpy road, so the easier you can make it for them, the easier it will be for you to get the help you need.