Psst, parents! Look out for an IRS letter about your coming child tax credit money

A letter from the IRS isn’t usually a pleasant surprise. It can spark panic, as it did for one colleague who thought the envelope was an audit notice. But if your household received a notice from the tax agency recently, it could be about the new child tax credit for 2021 and how you may qualify to receive advance monthly payments starting on July 15. The same letter was sent to 36 million families across the US. 

As many as 92% of households with children — that’s 65.6 million kids — could receive this extra money. New rules this year will boost the annual child tax credit from $2,000 to a maximum of $3,600 per child. Also, unlike previous years, half of the total amount for the payment will be distributed automatically in advance partial payments through the end of 2021. Also note that parents have the option of deferring the monthly installments to receive the lump sum when filing taxes in 2022. 

We’ll lay out what the letter will and won’t tell you, and why you should watch for a second letter from the IRS about your child tax credit checks. (We’ll also tell you what it means if you don’t get a letter.) You can use CNET’s child tax credit calculator to estimate your payments and read more about how to spend your child tax credit money.

Who is receiving the first child tax credit letter from the IRS?

Congratulations. If a letter that looks like this arrives in the mail… (see directly below)

… it means the IRS thinks you could qualify for the upcoming child tax credit, based on information it has from your 2019 or 2020 tax return — or from details you filed using the nonfilers’ tool to get your stimulus check money. 

Until there’s a check in your hand or direct deposit in your bank account it’s not a good idea to treat this letter as a guarantee of a coming child tax credit payment, but it appears your chances are good. As with all IRS correspondence, hold on to this letter for your records.

Will the IRS send a personalized follow-up letter?

If you do, in fact, get the go-ahead from the IRS to receive child tax credit payments (which start July 15) you’ll be treated to a second letter that confirms your eligibility. It also ballparks how much money you should expect to see in those checks. 

The 2021 child tax credit payment schedule gets a little complicated from here, but the upshot is that half the total money will arrive in increments from July through December, with the remaining money coming your way after you file taxes in 2022. 

You’ll want to keep this letter so you can compare the estimate with what you eventually receive and to make sure you get the right amount for the right number of children you claim. In case there’s a problem with child tax credit check delivery, this letter is almost like your receipt from the IRS, which you may need to reference in the future (like in a recovery claim on your 2021 taxes next year).

Can I still qualify for the credit without a letter from the IRS?

If a letter never shows up in your mailbox, that doesn’t necessarily mean the IRS is skipping you over for the child tax credit payments. After all, the vast majority of US households with children will receive some portion of the money earmarked for parents. 

For example, while 36 million families are intended to get a letter, up to 39 million households could qualify for the credit. That means off the bat, 3 million households could see a check, but no confirmation letter. 

You might not get a letter if the IRS:

What you can do now:

For more information about the child tax credit, here’s how you’ll use the two online IRS portals launching by the start of July and what happens if you have a baby this year.