Child Tax Credit Payments Start July 15
IRS has started sending letters to 36 million potential recipients!
The U.S. Treasury will start sending payments for the expanded child tax credit July 15, and eligible taxpayers could receive as much as $300 a month per eligible child through December. The rest will come with your 2021 tax refund when you file in 2022. About 39 million households will be eligible for the payments.
Who is eligible
The program has been expanded to cover 17-year-olds in 2021. Eligible families claiming the credit will receive $3,000 per qualifying child ages 6 through 17 and $3,600 per qualifying child under age 6. Previously, the amount of the credit was up to $2,000 per child age 16 and under. Age is determined as of Jan. 1, so children turning 18 on Jan. 2 or later are still eligible for the $3,000 credit, and children turning 6 on Jan. 2 or later qualify for the $3,600 credit.
The tax credit is reduced, or phased out, for people with modified adjusted gross incomes at or above $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household and $75,000 for singles.
Another new feature is that advance payments, totaling up to 50 percent of the credit, will be made monthly from July through December to eligible taxpayers who have a main home in the U.S. for more than half the year. The payments will be made by direct deposit, paper check or debit card. If you received a tax refund — or stimulus payment — through direct deposit, it is very likely you would receive the child tax credit advance payments electronically, says Smith, noting that the IRS prefers to pay via direct deposit. Others would likely receive a check or debit card.
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