More government checks are on the way.
Back in March, the Democratic controlled Congress passed a massive $1.9 trillion economic aid bill that included a $1,400 stimulus check to most Americans. But that wasn’t the only direct payment included in the package: The bill allowed for taxpayers to get up to half of the expanded child tax credit distributed this year in the form of monthly advances. The first of those advances goes out this week, on July 15.
How much you can expect
The stimulus package, for one year, upped the child tax credit from $2,000 to $3,000 per dependent ages 6 to 17. While for children ages 5 or younger, the credit was increased from $2,000 to $3,600 per dependent.
Eligible taxpayers (see more details below) will receive up to $300 per month this year for each child age 5 or under, or $250 per month for each child between the ages of 6 and 17. Similar to stimulus check payments, these distributions will be deposited directly into the bank accounts of eligible taxpayers who have their account information on file with the IRS. The rest of eligible taxpayers will either get it via a mailed paper check or debit card.
Who is eligible for the expanded child tax credit
Single filers earning $75,000 or less per year in modified adjusted gross income and couples filing jointly earning $150,000 or less per year can qualify for the full child tax credit for each of their dependents. Taxpayers earning above those levels will gradually see their payments phase out. For more information on phaseouts, check out this Coins2Day guide.
If the IRS internal records show a taxpayer is eligible, that taxpayer will automatically be enrolled to receive the monthly advances starting on July 15. Taxpayers can opt out of the monthly advances—and instead receive the lump sum in their 2022 tax return. While it’s too late to opt out of the July 15 payment, taxpayers can opt out of the remaining checks here.