As part of the American Rescue Plan Act of 2021, qualified families with minor children started receiving their Child Tax Credit payments in July.
Unlike the previous Child Tax Credit, which is applied when families with minor children file their taxes at the end of the year, this Child Tax Credit will be disbursed from July – December 2021.
The new change increases the amount of Child Tax Credit for which a family qualifies. Compared to what was received in the past, families could see an increase of more than $1,000 based on their financial qualifications.
Families with children under six can expect to see an increase from $2,000 to $3,600 per child. Those families with children over the age of six to age 17, the increase will change from $2,000 to $3,000 per child.
Families making up to $150,000 for a couple or $112,500 for single parents per year will receive the full credit.
How to receive the Child Tax Credit
The Child Tax Credit will be automatically calculated and deposited into the accounts of families with minor children if they filed taxes in 2019 and 2020, or signed up for stimulus checks from the Internal Revenue Service (IRS). It is important to note that your monthly payments will be sent to you by mail if you do not currently have direct deposit set up with the IRS.
Lastly, if you were not required to file taxes in 2019 and 2020 because you earned under $24,800 as a couple or $12,400 as head of household, you can still get the benefits. Families in this category can use the IRS’s Child Tax Credit Non-filer Sign-up Tool to apply for the benefits. To access the Sign-up Tool, visit: Child Tax Credit Non-filer Sign-up Tool | Internal Revenue Service (irs.gov)
You will need to provide your child’s Social Security Number and your contact information, such as an email or a mailing address. If you want your Child Tax Credit to be deposited into your account, be sure to provide your banking information
As of now, the Child Tax Credit is only for 2021. You can expect monthly payments on the 15th of each month until the end of 2021.
For more information on the Child Tax Credit, visit: www.whitehouse.gov/child-tax-credit/