Monthly child tax credit payments begin Thursday. Here is what you need to know.
Called an advanced child tax credit, the monthly payments are tied to your income taxes. If eligible, parents can receive half of their annual tax credit in monthly installments. Parents will receive the other half of the credit when they file their income tax return.
Here’s what families need to know about this new benefit:
Am I eligible?
Families with one or more children under the age of 18 are entitled to the full amount of the child tax credit this year if their income is less than:
- $ 75,000 for individuals filing their taxes on their own
- $ 112,500 for people who present themselves as the head of the family, such as single parents
- $ 150,000 for a married couple jointly filing taxes
People who earn higher incomes may still be eligible for a lower child tax credit, depending on how much they earn.
Families will receive up to $ 300 per month for each child up to age 5 and $ 250 per month for children ages 6 to 17.
What do I have to do to get paid?
Most eligible families don’t have to do anything to make sure they get the monthly tax credit money, Representative John Yarmuth, D-Ky said on Wednesday.
â€œIf you have filed income tax returns for 2019 or 2020, or if you have signed up to receive a stimulus check from the Internal Revenue Service, you will automatically receive this tax break,â€ he said. “You don’t need to register or take any action.”
The small number of families who do not meet any of these criteria must register to ensure they receive the monthly payments.
They can do this online at www.childtaxcredit.gov.
How is this credit different?
The U.S. government has given families a child tax credit for years, but the U.S. bailout – which Congressional Democrats passed without Republican support this year – made some major changes.
First: It temporarily increased the amount of the child tax credit from $ 2,000 to $ 3,600 per child under 6 and from $ 2,000 to $ 3,000 for children aged 6 to 17.
Second: Instead of giving the tax credit a lump sum after people filed their taxes like the government usually does, the US bailout allowed families to receive half of that money in monthly installments. , from Thursday until the end of 2021.
The other half will be provided once they file their taxes next year.
If you get your tax refunds by direct deposit from the IRS, the money should show up in your bank account on the 15th of each month, according to the White House. Otherwise, you should receive a check in the mail.
Contact reporter Morgan Watkins: 502-582-4502; [email protected]; Twitter: @ morganwatkins26.