BIR TO BEGIN PAYING THE ADVANCE CHILD TAX CREDIT

Joel Lee, CPA, Director of the Virgin Islands Bureau of Internal Revenue is pleased to announce the implementation of the Advance Child Tax Credit payments which is being funded through the American Rescue Plan of 2021. The Bureau will make five monthly installment payments beginning this month and ending in December 2021.

Taxpayers eligible for the Advance Child Tax Credit will receive 50% of the $3,000.00 Child Tax Credit amount. For the majority of taxpayers, this will be $300.00 ($1,500.00/5 months) per child per month. Those taxpayers with children under the age of 6 will not receive the increase $600.00 amount at this time, as the Bureau 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.

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 $300.00 per child per month payment. The thresholds are: $75,000.00 for single, $112,500.00 for head of household and $150,000.00 for married filing joint taxpayers.

In addition to the income requirements, the Bureau informs 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.