The third batch of monthly child tax credit payments will be distributed to millions of eligible American families beginning this week.
Direct deposits are scheduled to be sent out Wednesday, according to the IRS.
The payments are part of the American Rescue Plan signed into law by President Joe Biden, which increases the overall child tax credit, expands it to include children turning 17 this year and adds another annual $600 benefit per child under six years old.
Parents eligible for the full enhanced credit will get $300 a month per child under age 6 and $250 a month per child ages 6 to 17. The payments max out at $3,600 annually for each child under 6 and $3,000 for those ages 6 to 17.
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The full credit is available to all children ages 17 and under in families with 2020 or 2019 adjusted gross income of less than $75,000 for single parents and $150,000 for a married couple filing jointly, and ends for individuals earning $95,000 and married couples filing jointly making $170,000, though they’d still be eligible for the regular child tax credit.
The credit is fully refundable, meaning families can still benefit even if they have no earned income or do not owe income taxes.
If you filed taxes and the IRS already has your bank account information, the payments should be deposited directly into your account on the 15th of each month.
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But even if you haven't filed taxes in 2019 or 2020, or are not required to, you might still be eligible for the credit. The IRS created an online tool for parents to register their information electronically.
Some people would rather wait to get a bigger tax refund when they file their 2022 taxes early next year and might not want the monthly advance payments. To opt out, taxpayers can visit the Child Tax Credit Update Portal.
Although the expanded credit ends in December, Biden has called for a four-year extension, which would need congressional approval.
If you still haven't received your payments for July or August, there may be a couple of reason for that.
- The IRS might not have updated address and bank account information for you. Visit the Child Tax Credit Update Portal to see whether your information is up to date. You can also check the status of your payment on the portal.
- As previously mentioned, eligibility is determined by 2020 tax returns, or 2019 if you haven't filed taxes yet 2020 or your 2020 documents haven't been process. If you haven't filed either 2020 or 2019, you need to register your information with the IRS. You can register that at the IRS Portal.
- If your account and address information is correct and you still haven't received your payment, you may need to file a payment trace with the IRS. To do that, you'll need to complete a Form 3911 and mail or fax it to the IRS.
