The new child tax credit, which impacts about 40 million American families, swings into motion July 15. Do you qualify? How much are the payments? When will you get the credit? Here’s everything you need to know.
The child tax credit is basically an advance on half of what you’d normally be entitled to after filing your returns. The new credit for the 2021 tax year increases benefits up to $3,600 for younger kids and up to $3,000 for older kids. For qualified families, the credit for kids 6 and under is up to $300 per month. For kids aged 6 to 17, the credit is up to $250 for each child aged 6 to 17. The credits phase out for kids 18 and older. Your payments could be smaller than that, as they are based on income filed via your 2020 tax returns.
As NPR notes, the credits will begin July 15 and continue through December. The payments will be automatically deposited into accounts according to your tax returns, so make sure you’ve filed your taxes!
The qualifications for the credit are as follows: Any single filer making $75,000 or less is entitled to the full credits. For married couples filing jointly, the number is $150,000 or less. The more you make, the smaller the benefit issued.