The Child Tax Credit (CTC) for 2021 is fully refundable if you (or your spouse, if filing a joint return) have a principal place of abode in the United States for more than half of 2021. Fully refundable means that you can benefit from the maximum credit even if you do not have earned income or do not owe any Federal income tax. Most qualifying taxpayers can receive half the credit in advance monthly payments and the other half when they file their 2021 individual tax return.

However, the rules and procedures for getting advance payments of the CTC are different for U.S. Territory residents.

Individuals can find out if they qualify for the Advance CTC by using the IRS’s Advance Child Tax Credit Eligibility Assistant.

For information on the amount of your CTC, see Topic C: Calculation of the 2021 Child Tax Credit.

U.S. Territory Residents and Advance CTC Payments

• Residents of certain U.S. Territories except Puerto Rico (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the U.S. Virgin Islands)
  You may be eligible for advance CTC payments with your U.S. territory tax agency. Please contact your local territory tax agency for additional information about any advance payments and other changes to the CTC.
• Freely Associated States (Federation of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau)
  Citizenship or residency status in one of the Freely Associated States, by itself, does not entitle you to advance CTC payments or the CTC itself. If your main home is in the 50 states or the District of Columbia for more than half the year, and you qualify based on other eligibility requirements, you may be eligible for the CTC and advance payments of this credit.
• Residents of Puerto Rico
  Residents of Puerto Rico are not eligible for advance payments of the CTC. However, you may be eligible to claim the CTC even if you don’t have earnings or pay U.S. Social Security taxes. The requirement to have three qualifying children was removed starting in 2021, and you need only one qualifying child to claim the CTC on:
  • Form 1040-PR;
  • Form 1040-SS;
  • Other 1040 series form filed with the IRS for 2021.

For more tax information pertaining to international taxpayers, see IRS.gov International Taxpayers page.

For more 2021 Advance CTC resources, see:

• IRS Revenue Procedure 2021-24
• TAS 2021 Child Tax Credit & Advance Payment Option Get Help page
• TAS Tax Tip: Check out these Advance Child Tax Credit tools
• TAS Advance Child Tax Credit Payments – YouTube video – Explains what the Advance CTC is, who will get advance payments and when to use the non-filer tool
• IRS Advance Child Tax Credit Payments in 2021
• IRS Advance Child Tax Credit Eligibility Assistant – Checks your eligibility using the eligibility assistant
• IRS 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions
• IRS Child Tax Credit Update Portal – Helps you manage your payments and payment delivery information.
• IRS Verifying Your Identity to Manage your Payments – Provides answers to frequently asked questions about verifying your identity for the 2021 Advance CTC payments.
• IRS Child Tax Credit Non-filer Sign-up Tool – Helps you report qualifying children born before 2021.
• IRS Resources and Guidance – Includes e-posters in other languages, user guides, tax tips and more.
• IRS Accessibility Guides for IRS Applications – Guide to assist individuals with disabilities who use the Child Tax Credit Update Portal application.

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Source: taxpayeradvocate.irs.gov