When President Joe Biden and Democrat leaders unveiled their $1.9 trillion stimulus package earlier this year, it included an expanded child tax credit for low-income and middle-income families. The tax credit means that those families who qualify will be sent payments each month until their designated amount is reached. This money can be used to help in however each individual family needs it most, such as paying rent or buying groceries.
In a speech on the child tax credit, delivered from the White House, President Biden said, "It's our effort to make another giant step toward ending child poverty in America." He added, per Reuters, "This can be life-changing for so many families." The child tax credit payments will be going out to many families in the United States, but there is still a lot about it that many don't know. Scroll down to read more details on the child tax credit payments, and learn if you are eligible.
How Much You Get
The American Rescue Plan increased the #ChildTaxCredit payments from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six -- and made the payments automatic and monthly for most. 2/7— The White House (@WhiteHouse) June 21, 2021
The previous child tax credit amount was around $2,000 per child, but the American Rescue Plan has increased that to "$3,000 per child for children over the age of six." Additionally, parents will get "$2,000 to $3,600 for children under the age of six." Finally, the ARP "raised the age limit from 16 to 17."prevnext
On July 15th, nearly all working families will start seeing $250 to $300 per child automatically deposited in their bank accounts or sent to their mailboxes. #ChildTaxCredit THREAD: 1/7 pic.twitter.com/bx25VGzhLY— The White House (@WhiteHouse) June 21, 2021
To qualify for the 2021 Child Tax Credit payments, there are a couple of income factors involved. First, a couple who files their taxes jointly and earns up to $150,000 annually will receive the payments. For single-parent households, all families with a Head of Household tax-filer who makes up to $112,500 a year will also qualify for the payments.prevnext
How To Get Your Payment
What if I didn't file taxes?
For those who didn't earn enough income to be required to pay taxes, you can use the Non-Filers tool to sign up for the #ChildTaxCredit.
If you're late filing taxes, you can still file a return to get monthly Child Tax Credit payments in 2021. 5/7— The White House (@WhiteHouse) June 21, 2021
Families who qualify may have already received a letter notifying them of their eligibility for the Child Tax Credit payments. These individuals will have to do nothing, as is the case for those who've already provided direct deposit info to the IRS. The payments will be made automatically. For those who did not earn enough to file taxes in 2019 or 2020, there is a non-filer tool where they can provide their info and get eligibility.prevnext
When Do The Payments Begin
Who qualifies for the #ChildTaxCredit?
Nearly all families with kids will qualify. Couples making less than $150,000 and single parents making less than $112,500 qualify for the full benefit. Those with higher incomes may qualify for a smaller benefit or no benefit. 3/7— The White House (@WhiteHouse) June 21, 2021
The Child Tax Credit payments will begin on July 15th. According to the Biden administration, almost all families will start seeing payments made via direct deposit on this day. The White House adds that the initial payments will be around $250 to $300 per child.prevnext
How Long Will Payments Last?
Do I have to do anything to get the payments?
Nearly all working families with kids will get the #ChildTaxCredit automatically. If you filed your 2019 or 2020 tax return, or if you signed up for stimulus payments using the IRS's Non-filer tool last year, you're all set. 4/7— The White House (@WhiteHouse) June 21, 2021
After the first payments in July, families will receive monthly payments on the 15th of each month until their full amount is paid out. The one exception at this point, the White House points out, is August. That month, the payments will be made by the 13th, as the 15th falls on a weekend.prevnext
Child Tax Credit Extension Plan
Can we get these benefits after 2021?
The new #ChildTaxCredit enacted in the American Rescue Plan is only for 2021 -- but President Biden's American Families Plan proposes extending the credit for years and years to come. 6/7— The White House (@WhiteHouse) June 21, 2021
According to the White House, "The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That's what he proposes in his American Families Plan." At this time, there is no word on what it may take to get U.S. Congress to pass the AFP.prevnext
This Is Not Another Stimulus Payment
Finally, it should be noted that the Child Tax Credit payments are not the fourth round of stimulus payments related to the Covid-19 pandemic. There have been discussions of another stimulus package that would provide new payments to most Americans, but at this time there is no official word on whether or not this will happen.prev