The White House has announced starting July 15, nearly all working families will start receiving a $250 to $300 monthly payment per child as part of the Child Tax Credit.
Here are 9 things you need to know:
- The American Rescue Plan increased the Child Tax Credit payments to $3,000 per child for children over the age of six and $3,600 for children under the age of six.
- Couples making less than $150,000 annually will qualify to receive the full benefit.
- Single parents making less than $112,500 annually will qualify to receive the full benefit.
- Those who exceed the annual income threshold may qualify for a smaller benefit or no benefit.
- If you filed your 2019 or 2020 tax returns you will automatically receive the credit.
- Payments will be distributed automatically on a monthly basis via direct deposit or checks by mail.
- If you have not filed taxes, but you signed up for your stimulus payments using the IRS’s Non-filer tool – you are all set to receive your credit.
- If you have not filed taxes or used the IRS’s Non-filer tool – you need to do so ASAP in order to receive your benefit.
- The new Child Tax Credit is only for the 2021 tax year. But, President Biden’s American Families Plan proposes extending the credit for years to come.
For more information visit ChildTaxCredit.gov.