Families with kids earn more stimulus payments starting July 15
Contributed By:The 411 News
Advance child tax credits begin paying out monthly benefits
Wash, D.C. — The Internal Revenue Service and the U.S. Department of the Treasury announced today that the first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) will be made on July 15.
Advanced child tax credit payments are a provision of the America Rescue Plan of 2021 allowing parents to receive the payments monthly instead of waiting to receive the lump sum payment after filing yearly taxes.
Advance monthly payments of the 2021 Child Tax Credit will be made regularly from July through December 2021 to eligible taxpayers who have a main home in the United States for more than half the year. The total of the advance payments will be up to 50 percent of the maximum Child Tax Credit.
Democrats want to make the advanced payments permanent. Some Republicans favor it, too. Congressional approval will be needed to continue the advanced tax credit payments in 2022.
Advance payments will be estimated from information included in eligible taxpayers' 2020 tax returns (or their 2019 returns if the 2020 returns are not filed and processed yet).
Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child between ages 6 and 17.
Roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.
The IRS urges people with children to file their 2020 tax returns as soon as possible to make sure they're eligible for the appropriate amount of the CTC as well as any other tax credits they're eligible for, including the Earned Income Tax Credit (EITC).
IRS and Treasury also announced the increased CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday.
The American Rescue Plan increased the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17.
Filing electronically with direct deposit can speed refunds and future advance CTC payments.
While most taxpayers will not be required to take any action to receive their payments, Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility.
Additional information for taxpayers on how they can access the Child Tax Credit will be available soon at IRS.gov/childtaxcredit2021.
Story Posted:05/17/2021
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