COVID-19: Advance Child Tax Credit Payments
Preparing for Advance Child Tax Credit Payments
This summer, parents of children 17 and under will start receiving advance payments of the Child Tax Credit (CTC), and for many, the amount of the credit has increased. These changes are part of the American Rescue Plan Act, signed into law by President Biden in March 2021, and represents the largest child tax credit to date. The Plan expands the CTC for tax year 2021 only, with distributions of periodic payments.
Effective July 15, 2021, the IRS will pay half the total credit amount in advance monthly payments over a period of six months. Most families will automatically receive monthly payments without the need to take action. Parents can claim the other half when filing their 2021 tax returns next year.
As with Economic Impact Payments (stimulus checks), the IRS will calculate and automatically send advance payments to those who are eligible. They will use information from your most recent tax filings to calculate payment amounts and to determine whether your payment will be sent electronically to your bank account or mailed to you as a check.
Finding Answers to Commonly Asked Questions
We understand you may have questions about this program, and have compiled the following list of questions that are most frequently asked, and which are answered on the IRS’s website:
- When will the IRS start making advance Child Tax Credit payments?
- Who qualifies for advance Child Tax Credit payments?
- What is the amount of the Child Tax Credit?
- How much will I receive in advance Child Tax Credit payments?
- Does the amount of the Child Tax Credit vary by income?
- How do I opt out of receiving the credit?
We recommend that you visit the IRS’s website for the most updated and accurate content. We encourage you to check this site for answers to your questions prior to calling us in order to avoid long phone hold times.
- What if the direct deposit is sent to a closed account? If a tax credit payment is sent to a closed account, we’ll perform a search to determine if the client(s) have another account in their name(s). If we locate another account in the name(s) of the tax credit, we will attempt to reroute the deposit. If there is no matching relationship with the bank, we’ll return the deposit to the IRS.
- What can I do now to prepare?
- Be the first to know – set up an alert
If you expect your payment to arrive electronically, log in to digital banking and set up a direct deposit alert for the account into which your payment will be deposited. This will ensure you’re aware of when the payment arrives in your account. Not yet enrolled in digital banking? It takes just minutes.
- Fastest deposit - enroll in Mobile Deposit
If you’re expecting to receive your Child Tax Credit payments via paper check, use mobile deposit or one of our ATMs for the fastest check deposit experience and skip long lines at our banking center drive-thru.
All deposits are subject to review and funds from your deposit may not be available for immediate withdrawal. This information is intended for informational use only and is subject to change. For the latest details visit the IRS website.