Monthly Child Tax Credits - IRS Payments Start July 15th
The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July.
The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. The letters are going to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return.
Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15th.
Who Is Eligible?
The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:
- $150,000 or less for married couples filing a joint return and qualified widows and widowers.
Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return. If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS will instead determine the payment amount using the 2019 return.
Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.
The IRS will issue advance Child Tax Credit payments on the following dates:
- July 15th
- August 13th
- September 15th
- October 15th
- November 15th
- December 15th
Eligible Families Should File Tax Returns Soon
The IRS urges individuals and families who haven’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for.
Our HiAccounting team will continue to share updates. Our team of CPAs, accounting and tax professionals are here to help! Contact us today at 808.529.9990 so we can help you and your family take advantage of all eligible credits available to you.
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