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Advance Payments of the Expanded Child Tax Credit

MinistryCPA has received many inquiries regarding the advance payments of the expanded child tax credit.

For 2021, the child tax credit has been increased and made fully refundable. Most individuals with children have likely received correspondence from the IRS indicating their eligibility for the advance payment of these credits which will be sent out each month beginning on July 15. Those who receive the advance payments will claim the second half of the expanded child tax credit on their return.

For some families, it may be advantageous to unenroll from receiving the advance payments. Each situation is different, so it may be wise to do some basic tax planning to determine the best course of action. If you are unsure whether to receive these advance payments of the credit now or wait to claim the credit on your 2021 return we recommend unenrolling now. The full credit will be available to you on your 2021 return if you unenroll from these payments. To stop advance payments both you and your spouse must unenroll three days before the first Thursday of the the month. 

Please contact us if you are interested in tax planning or have questions regarding the updated child tax credit.

For more information on the expanded child tax credits visit the IRS Child Tax Credit Update Portal: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal





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