Kids. They are cutest sweetest little things. And also, really expensive.
In March 2021 a new stimulus bill was passed. Part of that bill included the Additional Child Tax Credit Advance. Before we talk about the advance, we should talk about the regular child tax credit. The child tax credit has taken on many different forms, but most recently it's been a $2,000 payment per child up to 3 children. Part of the pandemic relief includes changing the amount of child tax credit. In 2021, instead of $2,000 per child, families can receive up to $3,600 for children under 6 and $3,000 for children from 6 to 17 years old.
Normally the child tax credit is a big windfall on the tax return. For 2021, Congress is trying something different. Instead of having to wait until 2022 to claim the entire amount on your tax return, they are going to make partial payments during 2021.
When Will the Payments Be Made?
Payments will be made monthly between July and December 2021, with the first...