Starting on July 15 families will receive monthly payments from the IRS as a part of the American Rescue Plan. Income-eligible families will automatically receive monthly payments of $250 or $300 per child.
These payments are considered an “advance” on the 2021 Child Tax Credit return. The total amount families will receive is $3,000 per child 6-17 years old and $3,600 per child under 6 years old. The first half of these payments are broken up over July, August, September, October, November, December.
Working families will be eligible for this tax credit if they make less than $150,000 for a couple or $112,500 for a family with a single parent.
Anyone who filed tax returns for 2019 or 2020 and qualifies for these payments will get this tax relief automatically. If a person did not file their taxes for 2019/2020 they can register to receive the Child Tax Credit using the IRS non-filer tool.
What you need to register :
- Social Security Social Security numbers for your children and Social Security Numbers (or ITIN) for you and your spouse
- A reliable mailing address
- E-mail address
- Your bank account information (if you want to receive your payment by direct deposit).
According to the IRS receiving the Child Tax Credit, payments will not change the amount families receive in other Federal benefits like unemployment insurance, Medicaid, SNAP, SSI, TANF, WIC, Section 8, SSDI or Public Housing. The IRS published on their website that the Child Tax Credit is not considered income for any family.
People can choose to opt-out of the monthly payments and receive one lump sum in 2022 when they file their 2021 taxes. Or families can still register for payments and receive the remainder of the payments for 2021.