IRS: Child Tax Credit Payments Begin July 15th

 

SAN ANGELO, TX -- As part of the American Rescue Plan, more than 36 million American families will begin receiving monthly Child Tax Credit payments next month.

Under the bill, the Child Tax Credit was expanded to provide families with younger children additional funds in the form of monthly payments until the end of the year. The previous CTC was capped at $2,000 per child, while the new expansion provides between $3,000 to $3,600 for children under 17.

The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:

  • $75,000 or less for singles,
  • $112,500 or less for heads of household, and
  • $150,000 or less for married couples filing a joint return and qualified widows and widowers.

Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.

The IRS will issue advance Child Tax Credit payments on July 15, August 13, September 15, October 15, November 15, and December 15.

Eligible families will receive an initial letter in the mail from the IRS based on the last two tax filing sessions.

Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15. Eligibility will be determined using the 2020 tax returns, or the 2019 returns families have not filed this year. 

"Filing soon will also ensure that the IRS has their most current banking information, as well as key details about qualifying children. This includes people who don't normally file a tax return, such as families experiencing homelessness, the rural poor, and other underserved groups," said the IRS in a statement. "For most people, the fastest and easiest way to file a return is by using the Free File system, available only on IRS.gov."

The IRS has created a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021, designed to provide the most up-to-date information about the credit and the advance payments.

Subscribe to the LIVE! Daily

The LIVE! Daily is the "newspaper to your email" for San Angelo. Each content-packed edition has weather, the popular Top of the Email opinion and rumor mill column, news around the state of Texas, news around west Texas, the latest news stories from San Angelo LIVE!, events, and the most recent obituaries. The bottom of the email contains the most recent rants and comments. The LIVE! daily is emailed 5 days per week. On Sundays, subscribers receive the West Texas Real Estate LIVE! email.

Required

Most Recent Videos

Post a comment to this article here:

X Close