| As a follow-up to our previous “Latest IRS EIP & Advance CTC Payment Update” communication sent to our partners on July 21, we are sharing new FAQs posted by the IRS today via their Tax Tips Newsroom page.
Questions include:
- Who is a qualifying child for the purposes of the advance Child Tax Credit payment?
- What should someone do if they don’t want to receive advance Child Tax Credit payments?
- Will receiving advance Child Tax Credit payments affect other government benefits?
- Are advance Child Tax Credit payments taxable? Important Note: Be aware that taxpayers who receive advance payments this year may have to repay the IRS if they are not eligible to claim the dependent(s) on their TY2021 return.
Partner Support encourages you to read these latest updates and sign-up for IRS e-News subscriptions to stay informed. These updates provide instructions and guide you in proactively assisting and responding to questions you may receive from current and/or prospective clients.
Additional information and instructions are now consolidated and available on a special IRS Advance Child Tax Credit 2021 page | Español. This new page is designed to provide tax professionals and taxpayers with the most up-to-date information about the credit, advance payments, and includes access to the Advance Child Tax Credit online tools where taxpayers can manage payments, check eligibility and non-filers can submit information.
IRS resources on the Child Tax Credit advance payments and other related topics can be easily accessed via the IRS American Rescue Plan (ARP) and COVID Tax Relief Updates sections located on the Partner Support Resource Center > Industry Links page.
Thank you,
The Partner Support Team |
