The IRS To Send Child Tax Credit Payments Starting July 15
As part of President Joe Biden's $1.9T "American Rescue Plan", the amount of the Child Tax Credit (CTC) has changed. The CTC for the 2020 tax year was $2000 per child under 17, for the 2021 tax year, that amount has been increased to $3000 per child ages 6-17 and $3600 per child under 6.
On June 4, I received a letter in the mail from the IRS alerting me that I may be eligible for an advance payment of the CTC for each of my two children. I assume that the reason for this option is because families are still struggling financially from the pandemic.
According to the letter, the "American Rescue Plan" directs the IRS to make advance monthly payments of half of the estimated annual CTC, the payments will begin on July 15.
So, if your child qualifies for a $3600 CTC, you will receive $300/month from July through December, if your child qualifies for a $3000 CTC, you will receive $250/month.
Payment dates are as follows:
- July 15
- Aug. 13
- Sept. 15
- Oct. 15
- Nov. 15
- Dec. 15
The maximum CTC is available to taxpayers with a modified Adjusted Gross Income of:
$75,000 or less for single taxpayers.
$112,500 or less for head of household.
$150,000 or less for married couples filing a joint return and qualifying widow(er)s.
Payments will be automatically sent by direct deposit or paper check.
Note: If you do not wish to receive advance payments of the CTC and wish you receive the entire amount when you file your 2021 tax return in 2022, visit irs.gov/childtaxcredit2021..