Starting in July, you could be getting money from the IRS. As part of latest stimulus bill (the American Rescue Plan Act of 2021), the Child Tax Credit was expanded to provide additional funding to families. Per the requirements of the legislation, the IRS will be sending advance payments ahead of tax season.
Child Tax Credit amounts will be different for each family
- Your amount changes based on the age of your children. The payment for children:
- Ages five and younger is up to $3,600 in total (up to $300 in advance monthly)
- Ages six to 17 is up to $3,000 in total (up to $250 in advance monthly)
2. Your amount changes based on your income. You’re eligible for the full amount if your Modified adjustable gross income is below:
- $150,000 for Married Filing Jointly or Qualified Widow(er)s
- $112,500 for head of household filers, and
- $75,000 for single and Married Filing Separate
A portion of your amount is reduced (“phases out”) by $50 for every $1,000 over the limits listed above.
Q: When are payments expected to begin?
A: Families can expect the advance payments to begin on or around July 15, 2021, and continue monthly through December 2021. These payments will account for the first half of the credit and the second half can be claimed when you file your 2021 tax return.
Q: How will I receive my payment?
A: If eligible, your payment will most likely go to the bank account where you received your 2020 refund, or it will be sent to the physical address on your return if there isn’t a bank account tied to your filing.