The Internal Revenue Service will begin distributing payments to families eligible for the 2021 child tax credit and advance child tax credit this Thursday.
The IRS will pay half the total credit amount that families will receive for their 2021 taxes, according to irs.gov. The advance monthly payments begin July 15 and will continue monthly through the end of the year. The credit will be directly deposited into bank accounts.
The remaining half of the credit should be claimed when filing 2021 tax returns.
Families could get up to $3,600 for each child younger than 5 and $3,000 for kids between the ages of 6 and 17 annually, according to the IRS. Monthly payments would be $300 for children younger than age 6 and $250 for those between 6 and 17.
This amount is based on income. Eligibility for the full amount is $150,000 for married couples, $112,500 for heads of household and $75,000 for single filers and married people filing a separate return. The amounts begin to decrease based on those earning higher incomes. To find out if you’re eligible, click here.
To qualify for advance child tax credit payments, individuals – and married couples, if filing a joint return – must:
• Have filed a 2019 or 2020 tax return and claimed the child tax credit on the return; or
• Have given the IRS information in 2020 to receive the economic impact payment using the “Non-Filers: Enter Payment Info Here” tool; and
• Own a main home in the U.S. for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the U.S. for more than half the year; and
• Have claimed on their tax return a qualifying child who is younger than 18 at the end of 2021 and who has a valid Social Security number; and
• Have made less than certain income limits.
Families can opt out of receiving the advance monthly payments this year and instead receive the full credit when filing 2021 taxes by clicking on this link.