As of 1-26-23
Starting July 15, 2021, as part of The American Rescue Plan Act's (ARPA) of 2021 Expansion of the Child Tax Credit (CTC), the U.S. Federal Government will start disbursing monthly payments to millions of families, providing them with extra funds through the end of the year along with a tax break next year. The expansion of the Child Tax Credit (CTC) is for the year 2021 only. Parents will receive payments on the 15th of each month unless it falls on a weekend or a holiday.
Who is Eligible?
Families can check their eligibility at this IRS Website.
How Much Will Families Receive?
This depends on your household income and family size. Eligible families can receive a total of up to $3,600 for each child under 6, and up to $3,000 for each child age 6 to 17 for 2021. That's an increase from the regular child tax credit of up $2,000 for each child up to age 17.
What Do I Need to Do to Get It?
The IRS urges individuals 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). Filing electronically with direct deposit also can speed refunds and future advance CTC payments.
How Will I Receive the Payments?
Payments will be issued either by direct deposit, as long as correct banking information has previously been provided to the IRS, or by check. Debit cards will not be issued for CTC payments in 2021. The Treasury check for a CTC payment will have identifying text in the memo field stating, “Advance Child Tax Credit Payment” and “[payment month, year]” (e.g., July, 2021).
Who Can Help Me with Payment Questions?