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Financial advisor Sherri Goss explains 2021 advanced Child Tax Credit Payments

"The payment depends on your income and how many children that you have that you’ll receive."

MACON, Ga. — As the IRS rolls out its first child tax credit payment, millions of families will see extra money in their accounts beginning Thursday.

Registered Investment Advisor Sherri Goss explains this year's child tax credit.

She gave us tips on how people can file for the tax credits if they haven't already.

Q: What is the new child tax credit law?

A: So the big change is this tax credit that is starting to be paid out this month is actually a tax credit you normally would had to wait until you filed your tax return next year to receive, but they changed the rule for this year only, so starting in July, you will get a tax credit if you qualify for your children. The payment depends on your income and how many children that you have that you’ll receive, but you will get starting July 15th every month through the end of the year.

Q: Explain the monthly tax credits and how one goes about applying for that?

A: So what the IRS is saying on their website is that they will use information that you provided earlier to determine if you qualify and automatically enroll you for the advanced payments. They say you don’t need to take any additional actions to qualify for the advanced payments. However, you can go to IRS.gov and just type in the search bar ‘Child Tax Credits,’ and it will take you to the site that has everything you need to know about how to apply, and how to manage your payments. Because, let’s say that you’ve changed bank accounts this year and now you’ve got to change the bank account the money is going to go to, so there is a place for you to do that, and there is a place for you to enter information if you didn’t file a tax return last year. This is based on your tax return last year that you filed. So, if you didn’t file a return you need to go in and enter information so that you can get these tax credits. If you are wondering if you are even eligible. There is a thing called eligibility assistant and you can click on that and put in your information and it will tell you whether you are going to get these payments or not.

Q: Can you give examples of how this would vary from family to family?

A: So, here’s the big deal. Let’s say you have a single person they would have had to earn less than $75,000 to qualify for these tax credits. Children under six get a total, through the rest of this year of $1,800. If they are aged 6-17 they get a total of $1,500 through the end of the year. So, it could be roughly $300 a month per child through December if you qualify. Now if you are married filing joint the cap on the income filing both parties that filed a joint tax return is $150,000. If they earned less than that and they have children they are going to get tax credit monthly through the end of the year.

Q: Is there anything else you would like to add that you think families should know?

A: I guess the biggest thing is the IRS has done a really good job of creating this Q&A site. Again, it is IRS.gov and you just search in the search bar child tax credits and it lays out everything and how it works, and who qualifies in all of these links, so it’s fantastic.