About 36 million families will receive a letter in the mail, letting them know that the expanded child tax credit will begin to hit bank accounts starting July 15.
The federal government’s child tax credit was part of the $1.9 trillion American Rescue Plan that was signed in March.
There are qualifications.
Aside from having children 17 or younger as of Dec. 31, 2021, you must fall into a certain income bracket.
For single taxpayers, you must have made $75,000 or less when you filed your most recent taxes. It’s $112,500 or less for heads of households, or $150,000 or less for married couples filing a joint return.
If you already filed your taxes and meet those qualifications, you don’t have to do anything to get your money. However, if you did not file your 2019 or 2020 taxes, you’ll have to fill out the application using the non-filers tool on the IRS website.
Parents will receive $3,000 for each child ages 6 to 17 and $3,600 for each child under age 6.
The money will be given out in installments -- $250 or $300 for each child every month starting in July until December. Parents will receive the rest of the money on next year’s tax return.
The White House has deemed Monday, June 21, as Child Tax Credit Awareness Day. While Vice President Kamala Harris visited Pennsylvania on Monday to promote the child tax credit.
“The increase and the expansion of the child tax credit is one of the most important, one of the most impactful parts of the American Rescue Plan on Child Tax Credit Awareness Day,” Harris said.
Also on Monday, White House National Economic Council Director Brian Deese was questioned whether these payments could lead to inflation issues.
“No, I see this as the exact opposite. This is the kind of relief that we need as we sustain recovery,” Deese said.
Regardless, the payments will start going out next month. According to the IRS, in addition to the first initial letter, those who qualify will receive another one soon, outlining exactly how much money their family should expect to receive. Think of that letter as a receipt to make sure the amount of money going into your account is the amount of money you’re entitled to.