39 million slated to receive monthly Refundable Child Tax Credit beginning July 15
Posted on June 2, 2021
The Internal Revenue Service and the U.S. Department of the Treasury have announced that the first monthly payment of the Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. That’s roughly 88% of US households — without any action required on the part of taxpayers.
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 plan is intended to lift more than five million children out of poverty this year with the goal of cutting child poverty by more than half.
Here are the details:
- Eligible families will receive a CTC payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.
- CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday.
- Families who receive the credit by direct deposit can plan their budgets around receipt of the benefit.
- Households will receive the monthly CTC payments through direct deposit, paper check, or debit cards.
- While most taxpayers will not be required to take any action to receive their payments, the US Treasury and the IRS are partnering with service organizations to make more families aware of their eligibility.
Since March 12, the IRS has also distributed approximately 165 million Economic Impact Payments with a value of approximately $388 billion as a part of the American Rescue Plan.
If you are unsure as to whether or not your family and children qualify for this monthly payment, contact your CPA or tax preparer, or go to IRS.gov/childtaxcredit2021.