July 15th is Tax Credit Day! Will you receive your money?

The first monthly payments of the Child Tax Credit will start going out to families caring for kids today, July 15th, and monthly payments are set to continue for the rest of the year. Will you receive the money?

Today, July 15, is the first day to start receiving the monthly payments of the Child Tax Credit. Is your money on the way?

The American Rescue Plan expanded the Child Tax Credit and this will give more money to those who receive it. The IRS will issue the advance payments on the 15th of each month, beginning on Thursday, are you included?

The IRS will issue the advance Child Tax Credit payments on the 15th of each month, and eligible families will receive payments by direct deposit or check. Will you receive the advance Child Tax Credit Payments this week?

The $ 1.9 trillion American rescue Plan Act signed in March by President Joe Biden aimed to help the families most affected by the coronavirus pandemic but also to combat child poverty that affects almost ten million children in the United States.

The IRS is reminding taxpayers that there have been important changes to the Child Tax Credit that will help many families receive advance payments starting this summer.

 The American Rescue Plan Act of 2021 expands the Child Tax Credit (CTC) for the tax year 2021 only and this means that:

• The credit amounts will increase for many taxpayers

• The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don't have earned income or don't owe any income taxes.

• The credit will include children who turn age 17 in 2021.

• Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.

Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year, but for the tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021

The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

Advance payments of the 2021 Child Tax Credit will be made regularly from July through December to eligible taxpayers who have a main home in the United States for more than half the year.

 The total of the advance payments will be up to 50 percent of the Child Tax Credit and it will be estimated from information included in eligible taxpayers' 2020 tax returns (or their 2019 returns if the 2020 returns are not filed and processed yet).

This is why the IRS is urging people with children who haven’t filed their 2020 tax return to do so as soon as possible to make sure they're eligible for the appropriate amount of the CTC as well as any other tax credits they're eligible for, including the Earned Income Tax Credit (EITC).

Eligible taxpayers who do not want to receive an advance payment of the 2021 Child Tax Credit have the opportunity to decline to receive advance payments and can update information about changes in their income, filing status, or the number of qualifying children.

Filing electronically with direct deposit also can speed refunds and future advance CTC payments.

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