Part of the American Rescue Plan Act of 2021 was an increase to the Child Tax Credit and the start of monthly advance payments that can total up to half of the new credit amount to eligible families. The first of these payments started on July 15.
The IRS has created a portal that contains useful information about the credit, advance payments, process to stop or modify the payments and reconciliation of your 2021 tax filing. There is also a very detailed FAQ section.
Those who receive the advance payments may want to visit the IRS’s Paycheck Checkup tool and Tax Withholding Estimator to see how the payments could affect your annual tax liability. If you choose to update or adjust your tax withholding based on your review, please complete and sign a new W-4 and submit it to the Payroll Office.
Contact a professional tax preparer for consultation related to individual tax questions if you need further assistance.