When Will The Child Tax Credit Be Paid? When will your checks arrive, and how much will you receive?
Payments for the federal Child Tax Credit are expected to arrive in July, putting thousands of dollars in parents’ pockets by the end of the year.
The Child Tax Credit was expanded under President Joe Biden’s American Rescue Plan, allowing people to receive greater payments and requiring the payments to be given out on a monthly basis rather than being claimed on the next year’s taxes. Despite concerns that the Internal Revenue Service’s workload might cause payments to be delayed, the agency verified that checks will be issued beginning in July, as required by law.
During remarks on the White House’s commitment in child care on Friday, Vice President Kamala Harris confirmed that payments would be made next month.
“People have to pay their expenses every month,” Harris said. “Let’s make it real and tied to the responsibilities and strains of being a parent and having a family, especially with young children.” “We want to make sure that every family with children who qualifies for this tax credit receives it, because they deserve it, and it will help us lift half of those youngsters out of poverty that I stated earlier.”
When Congress passed the American Rescue Plan in March, the Child Tax Credit was already in place, but the rescue package increases payments. Payments for children under the age of six will rise to $3,600, a $1,600 increase above the normal credit, while payments for children aged seven to seventeen would rise to $3,000, a $1,000 increase.
However, the enhanced payouts will not be available to everyone. Individuals must earn less than $75,000 to be eligible for the full payments, and joint filers must earn less than $150,000. Such with incomes in excess of those amounts will have their payments decreased. On their 2021 tax return, anyone who does not qualified for the full payout can claim the usual credit.
People can use online calculators from Kiplinger and CNET to figure out how much they should get from the enhanced Child Tax Credit. People must enter their filing status, the number of qualifying children they will have as of December 31, and their adjusted gross income into the calculators.
According to the IRS, the payments are projected to reach about 39 million households. This is a condensed version of the information.