Monthly Child Tax Credit Payments under President Biden released information for the American Rescue Plan starting next in July.
On May 17th, 2021 Biden’s message, “Help is Here” is resounding as there is tax relief coming for families with children under 18. The U.S. Department of Treasury and Internal Revenue Service (IRS) that on July 15th, the monthly payments will begin to about 39 million families. The tax credits are expected to cover 88% of all U.S. children. It is only set up for July-December of 2021. There are no forms to fill out as the IRS will review tax information and send payments out based on their data automatically.
- Beginning onand paying out every month on the 15th unless it’s a weekend or holiday through December 2021.
More details can be found from the Congressional Research Service here.
- Individuals with an adjusted gross income of less than $75,000 are able to receive full credit (either $3,000 for each child 6-17 years or $3,600 for each child 0-5 years old).
- Head of household filers with an adjusted gross income of $112,500
- For married couples filing jointly, the income cap is $150,000 to receive the full credit.
- For married couples with returns over $150,000- the phase-out is $50 less for every $1,000 over $150,000
- If a family has an adjusted gross income of $440,000 the child tax credit is phased out at $0.
$ Amount $
- Direct deposits will be made for the child tax credits.
- If no direct deposit account was set up on last tax returns, then a paper check or debit card may be distributed through the mail.
Eligible families will receive monthly payments of:
$300 for each child 5 and younger
$250 for each child 6 and older
The U.S. Department of the Treasury reported, “The American Rescue Plan increased the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17. The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half.” Before the American Rescue Plan, the credit amount was maxed out at $2,000.
Monthly Child Tax Credit Payments are bound to assist families over the summer with needs from childcare, to food, diapers and clothing. This is an example of quality teamwork from the IRS, U.S. Department of the Treasury, Bureau of the Fiscal Service, and White House American Rescue Plan Implementation Team.
- Options to opt-out of the monthly CTC should be available on the IRS website July 1st. One can receive their tax credit in one lump sum in the 2021 tax return next year.
Check out the Child Tax Credit Calculator thanks to Cnet.com
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