WASHINGTON D.C. (WBAP/KLIF News) – Millions Americans will begin to receive child tax credit payments starting July 15th.
The U.S. Treasury Department outlined the changes to the Child Tax Credit program on Monday, which will impact 39 million citizens.
It’s part of the $1.9 trillion COVID-19 relief package President Joe Biden signed into law back in March.
The American Rescue Plan Act expands the Child Tax Credit program for the 2021 tax year only.
The expanded credit means:
- Qualified American families will see an increase.
- The credit for qualifying children is refundable, meaning that taxpayers can benefit from the credit if they don’t have earned income or don’t owe any income taxes.
- The credit will include children who turn 17 in 2021.
- Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.
The Treasury Department said qualifying families will now receive up to $3,000 per child between the ages of 6 and 17 at the end of 2021.
They’ll receive $3,600 per qualifying child under the age of 6 until the end of 2021. The previous law the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year.
According to the CTC, the increased amounts are reduced for incomes over $150,000 for married taxpayers filing a joint return and qualifying for widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
The Internal Revenue Service is urging people with children to file their 2020 tax returns as soon as possible to make sure they’re eligible for the CTC and other credits they may qualify for.
Click here for more information about the CTC program.
Eligible families will receive a payment of up to $300 per month for each child under age 6, & up to $250 per month for each child age 6 and above.
Households will receive the monthly payments through direct deposit, paper check, or debit cards.— Treasury Department (@USTreasury) May 17, 2021
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