What is Advance Child Tax Credit?

Most families received the advance Child Tax Credit in monthly payments that started in July of 2021. For every child 6-17 years old, families got $250 each month, and for every child under 6 years old, families got $300 each month. Families are eligible for the full credit if they make up to $150,000 for Married Filing Jointly or $112,500 for a Head of Household.

When a family files a 2021 tax return they will need to subtract advance Child Tax Credit payments received during 2021 from the amount of Child Tax Credit that can properly be claimed on a 2021 tax return. If the amount of Child Tax Credit exceeds the total amount of advance Child Tax Credit payments, a claim for a refund can be made for the remaining amount on a 2021 tax return.

If a family is eligible for the Child Tax Credit but did not receive advance monthly payments, they can still claim the full credit of up to $3,600 per child by filing a 2021 tax return.