The V.I. Bureau of Internal Revenue announced Tuesday the implementation of the Advance Child Tax Credit payments which is being funded through the American Rescue Plan of 2021.
The bureau said it will make five monthly installment payments beginning in August and ending in December 2021. Taxpayers eligible for the Advance Child Tax Credit will receive 50 percent of the $3,000 Child Tax Credit amount. For the majority of taxpayers, this will be $300 ($1,500/5 months) per child per month.
Taxpayers with children under the age of 6 will not receive the additional $600 amount at this time, according to the bureau, as B.I.R. said it is continuing to obtain and process the data needed to determine those taxpayers who are entitled to the increased amount. These taxpayers will receive the balance owed to them as part of their 2021 refund, according to the release.
Taxpayers are also informed about the income thresholds for eligibility for the advance payments. Taxpayers with income above the following thresholds will see a reduction in the $300 per child per month payment: $75,000 for single, $112,500 for head of household and $150,000 for married filing joint taxpayers.
In addition to the income requirements, B.I.R. informed taxpayers that in order to qualify for the Advance Child Tax Credit, the child or children must be residents of the Virgin Islands in 2021.
Taxpayers with questions about the Advance Child Tax Credit can call the bureau’s hotline at (340) 714-9325.
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