The first batch of the child tax credit advances went out to 35 million American households last week. That’s the first of six payments coming this year.
For one year, the American Rescue Plan upped the child tax credit from $2,000 to $3,000 per dependent ages 6 to 17; for children ages 5 or younger, the credit was increased from $2,000 to $3,600 per dependent. Half of those advances can come through monthly payments this year: Eligible parents and guardians 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.
The child tax credit advances, which started on July 15, go out on the 15th day of every month from July to December, except when the 15th falls on a weekend.
The remaining checks are set to go out on the following dates: Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15. Parents can opt out of the remaining monthly payouts here, and instead get the money come tax season next year.
As Coins2Day has previously reported, if IRS internal records show a taxpayer is eligible, that taxpayer will automatically be enrolled to receive the monthly advances. The distributions will be deposited directly into the bank accounts of eligible taxpayers who have their account information on file with the IRS. For the first check, 86% of households got it by way of direct deposit. The rest of eligible taxpayers will either get it via a mailed paper check or debit card.
Who is eligible? Single filers whose modified adjusted gross income is less than $75,000 per year 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 the child tax credit phaseouts, check out this Coins2Day guide.
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