Families across the United States who are eligible for the upcoming monthly Child Tax Credit payments have started to receive letters from the Internal Revenue Service (IRS) about the expected monthly payments.
Payments will officially begin on July 15. Low- and middle-income parents can expect to receive $3,000 for every child ages 6 to 17 and $3,600 for every child under age 6. The expanded amounts are tapered off once income hits $75,000 for individuals and $150,000 for married couples.
So, families will reportedly receive a monthly payment – between $250 to $300 per child – instead of an annual lump sum. Half of the credit will be paid out beginning July 15. From there, the IRS will deliver the monthly payments on the 15th of each month through December 2021.
The remaining half will be a credit toward next year’s taxes. Any money left after covering taxes will be paid directly to families.
If families earn too much to qualify for the tax credits, they can still receive the $2,000 credit for their children if their income level is below $200,000 for individuals and $400,000 for married couples.
For example, a family with a 10-year-old and a 4-year-old would be eligible for a credit of $6,600 if they earn less than $150,000. They would receive a credit of $550 per month through December, and then $3,300 when they file their taxes in 2022.