On July 15th, families will begin receiving the monthly child tax credit checks which was part of the most recent stimulus package.
This expanded child tax credit will be $3,600 per child under 6 and $3,000 for each child between 6 and 17.
The payments will be made out as follows:
- $300 per month for each child under 6
- $250 per month for each child between ages 6 and 17
That means that a qualifying family with for example one child under 6 and one child over 6 will receive $550 in monthly payments for six months, starting July 15 and ending December 15.
Do babies born in 2021 qualify?
All children born on or before Dec. 31, 2021 will receive the full $3,600 tax credit. Parents of twins in 2021 will get $7,200.
Who Qualifies for Cash Payments:
Anyone with a child 17 or under within the following income limits:
- $75,000 or less for single taxpayers
- $150,000 or less for married couples
How do you claim the money?
Most families don’t need to take any action if they want the advance payments this year. If you already filed a 2019 or 2020 federal income tax return (or used the non-filer tool in 2020 to register for a stimulus payment), you’ll get the credit automatically.
You will receive the money the same way you received your stimulus checks and/or tax refund on your most recently filed return.
If you haven’t filed a tax return, the IRS has setup a nonfilers portal where you can enter information about yourself and your dependents so you can claim this credit.
Should you opt out of the monthly payments?
This credit is an advanced payment on the child tax credit which is normally applied on your tax return. Should you not want to receive these advanced monthly payments, you can opt-out and instead receive the entire tax credit when you file your 2021 tax return. You can opt out via this online tool called the Child Tax Credit Update Portal.