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August 25, 2021

TAS Tax Tip: Advance Child Tax Credit – Update your address by August 30 for September payments

Tax Tip: Update your address by August 30 for September Advance Child Tax Credit payments

The IRS began issuing advance payments of the Child Tax Credit in mid-July. Similar to certain other credits with an advance payment option, taxpayers who receive these advance payments will have to reconcile the total amount received on their 2021 individual income tax return.

In January 2022, the IRS is planning to send Letter 6419 to all Advance Child Tax Credit (CTC) recipients, providing the total amount of advance CTC payments that were disbursed to those recipients during 2021. Please keep this letter regarding your advance CTC payments with your tax records. This information will be used to reconcile the credit amount on your 2021 individual tax return. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

Report changes that will affect your total Child Tax Credit

The IRS urges you to use the Child Tax Credit Update Portal (CTC UP) throughout 2021 to ensure that the IRS has the most up-to-date information regarding your eligibility for the 2021 CTC. This updated information will help the IRS continue to improve the accuracy of the estimated amount of the CTC that you will be allowed on your 2021 individual income tax return. CTC UP will currently allow you to unenroll to stop getting advance CTC payments, update your bank account information starting with the August payment, and update your mailing address starting with the September payment. You must update your address by midnight Eastern Time on Monday, August 30 to change your mailing address for your September payment.

The IRS is working on adding more features to CTC UP later this year, which are described in What if information about my bank, mailing address, income, or family has changed during 2021? You should report any change in income or eligible children as soon as these features are added.

If you promptly update your income and other information by using the CTC UP portal later in 2021, it will allow the IRS to better estimate your 2021 CTC and change the amount of your monthly advance CTC payments accordingly throughout 2021.

Important: These adjustments will reduce the potential for you receiving a total amount of Advance CTC payments that exceeds the amount of CTC you can properly claim on your 2021 individual income tax return. You may need to repay that excess amount in 2022.

For more information regarding CTC UP, and when new features will be added to CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

More information about the 2021 Child Tax Credit can be found at the links listed below: