Child Tax Credit Payments Start Next Month
The child tax credit monthly payments will start next month on July 15th (07-15-21). It's a part of the American Rescue Plan Act of 2021 signed by President Joe Biden. Families with children ages 5 and under will receive $3,600 and $3,000 for children ages 6-17. The plan increased the standard child tax credit for 2021 from $2,000 to $3,000 and up to $3,600 for families with kids 5 and under for each child.
If you have children in the age groups listed above you'll receive monthly payments from $250 to $300 per child depending on their ages. The payments will run from July until December and the remaining amounts will be applied and claimed on your 2021 taxes. Basically they're giving you half the amount of the child tax credit up front in monthly payments and the remainder at the end of the year when you fill your 2021 taxes.
To qualify for the monthly child tax credit payments listed above you can not exceed an annual income of $150,000 for couples and single parents can not exceed an annual income of $112,500. Most people will get their payments electronically, some will get paper checks depending on how you filed and received your refund for your 2019 and 2020 taxes. There's even some talk of the payments becoming permanent. President Biden has already expressed that he would like to extend the payments for the foreseeable future.
You can visit the official IRS website by clicking here to get all the details on the upcoming child tax credit payments and to see if you qualify. From the site you can also make changes to your current payment status or type and even un-enroll from the advance payment options if you'd prefer to receive your child tax credit payment as one lump sum when you file your 2021 Federal taxes.