What Ohio parents need to know to claim money

The Internal Revenue Services is notifying parents of important changes to the Child Tax Credit that will help families get advance payments this summer.The IRS will pay half the total credit amount in advance monthly payments beginning July 15.Parents can claim the other half when filing their 2021 income tax returns. These changes apply to the 2021 tax year only, according to the IRS.Child tax payment amounts for 2021:For the tax year 2021, the Child Tax Credit increased from $2,000 per qualifying child to:$3,600 for children ages 5 and under at the end of 2021$3,000 for children ages 6 through 17 at the end of 2021.Note: The $500 nonrefundable Credit for Other Dependents amount has not changed.How to Qualify:To qualify for advance Child Tax Credit payments, spouses who filed a joint return must have:Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; orGiven us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here toolA main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the yearA qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security numberMade less than certain income limits.The IRS said it will use the information provided earlier to determine qualification and automatically enroll people for advance payments.Parents do not need to take any additional action to get advance payments.The following information from the IRS answers frequently asked questions regarding the child tax credit payments:What are Advance Child Tax Credit payments?Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season. If the IRS processed your 2020 tax return or 2019 tax return, these monthly payments will be made starting in July and through December 2021, based on the information contained in that return.How will I receive my advance child tax credit payments?If the IRS has received your banking information, your payment will be sent to you as a direct deposit. We will use bank account information from the following sources, in the following order:Your 2020 tax returnYour 2019 tax return, including information you entered into the Non-Filer tool on IRS.gov in 2020Information you entered on Get My Payment in 2020A federal agency that provides you benefits, such as: Social Security Administration, Department of Veterans Affairs, or the Railroad Retirement BoardIf we do not have bank account information to issue you a direct deposit, we will send your advance Child Tax Credit payments by mail.What if my bank account information, mailing address, income, or family changed in 2021?The IRS will provide on IRS.gov a Child Tax Credit Update Portal (CTC UP) before the first payments begin, which initially will allow you solely to elect not to receive advance Child Tax Credit payments during 2021. More functionality will be added later this year that will allow you to:Update your mailing addressUpdate your bank account informationAdd or subtract the number of your qualifying children, including by reason of the birth or adoption of a childReport a change in your marital statusReport a change in your incomeMore details will be provided regarding CTC UP through these questions and answers once the portal is available.Do I need income to get a child tax credit payment?No. Even if you have $0 in income, you can receive advance Child Tax Credit payments if you are eligible.What if I do not want to receive the advance payments?If you prefer not to receive monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, or you know you will not be eligible for the Child Tax Credit for your 2021 tax year, you will be able to unenroll through the Child Tax Credit Update Portal (CTC UP). CTC UP will be available in June and will allow you to unenroll before the first advance Child Tax Credit payment is made. You will not be able to unenroll before the portal is open.Will the IRS contact me before payments are disbursed?Yes. In June, the IRS will send you Letter 6417. This letter will inform you of the amount of your estimated Child Tax Credit monthly payments. This letter will also indicate where you can find additional information about advance Child Tax Credit payments.Will my 2021 refund be delayed if receive advanced child tax payments?No.Are the child tax payments taxable?No. Advance Child Tax Credit payments are not income and will not be reported as income on your 2021 tax return. Advance Child Tax Credit payments are advance payments of your tax year 2021 Child Tax Credit.Will the advance child tax payments affect any government benefits I receive?No. Advance Child Tax Credit payments cannot be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs also cannot count advance Child Tax Credit payments as a resource for purposes of determining eligibility for at least 12 months after you receive it.Can my child tax credit amount be reduced based on my 2021 income?Yes. The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.The first phaseout can reduce the Child Tax Credit to $2,000 per child.That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:$150,000 if married and filing a joint return or if filing as a qualifying widow or widower;$112,500 if filing as head of household; or$75,000 if you are a single filer or are married and filing a separate return.The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:$400,000 if married and filing a joint return; or$200,000 for all other filing statuses.The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.How are my child tax payments determined?We will determine your advance Child Tax Credit payment amounts by estimating the amount of the Child Tax Credit that you will claim on your 2021 tax return during the 2022 tax filing season.Our estimate of your 2021 Child Tax Credit is based on information shown on your processed 2020 tax return. If we have not processed your 2020 tax return when we determine the amount of your advance Child Tax Credit payment for any month starting July, we will estimate the amount of your 2021 Child Tax Credit based on information shown on your 2019 tax return (including information you entered into the Non-Filer tool on IRS.gov in 2020). Once we have processed your 2020 return, we will recalculate your advance Child Tax Credit payments and adjust any remaining monthly payments.How do I reconcile my advanced child care payment and my child tax credit on my 2021 tax return?When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:The total amount of the advance Child Tax Credit payments that you received during 2021; withThe amount of the Child Tax Credit that you can properly claim on your 2021 tax return.Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.Excess Advance Child Tax Credit Payment Amount: If you receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.Will the IRS provide me with information to help me reconcile my advance childcare payments on my 2021 tax return?Yes. In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.This letter will be mailed to your address on file as of the letter’s mailing date. This generally will be the address on your most recent tax return, or as updated through the Child Tax Credit Update Portal (CTC UP) or the United States Postal Service (USPS).How to avoid a Advanced Child Tax Credit Scam:The IRS urges everyone to be on the lookout for scam artists trying to use advance Child Tax Credit payments as a cover for schemes to steal personal information and money. The IRS doesn't initiate contact by email, text messages, or social media channels to request personal or financial information – even information related to advance Child Tax Credit payments. Also, watch out for emails with attachments or links claiming to have special information about advance Child Tax Credit payments or refunds of the Child Tax Credit.If you receive a suspicious IRS-related email, see Report Phishing and Online Scams for additional information.For more frequently asked questions about child tax credit payments, click here.