The American Rescue Plan expanded the Child Tax Credit and this will give more money to those who receive it. The IRS started sending the advance payments yesterday, July 15, who will receive the money first?
The Internal Revenue Service and the Treasury Department announced yesterday that millions of American families have started receiving monthly Child Tax Credit payments. Who will receive the money first?
Millions of eligible families started receiving the money as direct deposits begin appearing in bank accounts and checks arrive in mailboxes.
“Today is a historic day for our country. Because beginning this morning, nearly all working families started receiving their first tax cut payment from the Child Tax Credit of up to $300 per child,” said President Biden yesterday on his Ig account.
According to the IRS website, this first batch of advance monthly payments worth roughly $15 billion reached about 35 million families yesterday across the country, and about 86% were sent by direct deposit.
The payments will continue each month, and the IRS has urged people who normally aren't required to file a tax return to explore the tools available on IRS.gov in order to determine eligibility for the advance Child Tax Credit or find help to file a simplified tax return to sign up for these payments, Economic Impact Payments, and any other credits they may be eligible to receive.
Under the American Rescue Plan, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17.
Normally, anyone who receives a payment this month will also receive a payment each month for the rest of 2021 unless they opt out.
Besides the July 15 payment, payment dates are Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15.
The agency has given these additional details on the payments:
• Families will see the direct deposit payments in their accounts starting July 15. For those receiving payment by paper check, they should remember to take into consideration the time it takes to receive it by mail.
• Payments went to eligible families who filed 2019 or 2020 income tax returns
• Tax returns processed by June 28 are reflected in these payments and include people who don't typically file a return, but during 2020 successfully registered for Economic Impact Payments using the IRS Non-Filers tool or in 2021 successfully used the Non-filer Sign-up Tool for Advance CTC, also on IRS.gov.
• Payments are automatic. Aside from filing a tax return, including a simplified return from the Non-Filer Sign-Up tool, families don't have to do anything if they are eligible to receive monthly payments.