What Are Advance Child Tax Credit Payments?

You may be wondering what advance Child Tax Credit (ACTC) payments are. ACTC payments are early payments of 50 percent of the estimated amount of the Child Tax Credit that you would normally claim on your 2021 tax return. If you’re eligible and the IRS has processed your 2019 or 2020 tax return, your advance payment amounts are based on the information from that return. The IRS is sending advance payments monthly, from July to December 2021.

For 2021, the Child Tax Credit increased for most families. It used to be $2,000 per qualifying child, but for 2021 it is $3,600 for children ages five and under at the end of 2021, and $3,000 for children ages six through 17 at the end of 2021.

To find more information and answers to other questions you may have about the advance Child Tax Credit payments, go to IRS.gov/childtaxcredit2021.