SAN ANTONIO – The Internal Revenue Service has finally set a date for the first round of child tax credit payments.
Starting July 15, qualifying families will receive advance payments of the 2021 child tax credit thanks to the American Rescue Plan Act.
Recommended Videos
Families claiming the child tax credit for the 2021 tax year will receive up to $3,000 for each qualifying child ages 6-17 and $3,600 for children under age 6. The child tax credit was previously $2,000 for qualifying children under age 17.
This means that families will receive up to $300 a month from July to December for each qualifying child under age 6, for a total of $1,800. The other $1,800 will be included in a family’s 2021 taxes. Families with children ages 6-17 will get up to $250 a month.
The credit will include children who turn 17-years-old in 2021 and is fully refundable, meaning taxpayers who don’t owe income tax or have any earned income can still benefit from the child tax credit.
The advance monthly payments sent to qualifying families will add up to be 50% of the child tax credit, and the payments will be estimated from information found in eligible taxpayers’ 2020 tax returns. 2019 tax returns will be used to determine payments if a family’s 2020 taxes have not yet been filed. Taxpayers will be able to claim the other half when they file their 2021 tax return.
The IRS has also set up a tool that allows people who aren’t required to file tax returns to provide information if they believe they will qualify for the child tax credit. The sign-up tool can be found here. People who have a main home in the United States for more than half of the year may also use the tool.
According to the IRS, tax credits will be reduced for families with incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
If you qualify for the child tax credit but do not want to receive the advance payments, the IRS website says details on how to waive the advance payments will be announced soon.
Related: Here’s what you need to know about those child tax credit payments