The IRS has released notice that families meeting the income thresholds will start receiving monthly advancements of 50% of their 2021 Child Tax Credit starting July 15th and the last payment being on December 15th. It is important to remember that this is an ADVANCEMENT of a tax credit you would normally receive on your annual return. Taking the advancement will reduce your credit when filing your return which will result in a higher tax liability (lower refund) for families taking the monthly advance. You are automatically opted in if your AGI (Adjust Gross Income) is under the IRS threshold, but can OPT out when the IRS has the portal complete (portal is not available at this time). You should contact your tax preparer to find out how this will affect your 2021 tax return. Click here to learn more https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
