How Much Is it, When Is the Next Payment and Everything to Know

Earlier this year President Joe Biden revealed a $1.9 trillion stimulus package, which included an expanded child tax credit. This would be a huge benefit for low-income and middle-income families, as the tax credit provides extra financial assistance for families who qualify. The payments began rolling out in July, with American families receiving the same amount each month based on certain qualifying factors.

“It’s our effort to make another giant step toward ending child poverty in America,” President Biden previously said in a speech on the child tax credit. “This can be life-changing for so many families,” he added, per Reuters. The second child tax credit payments start going out to U.S. families on Friday, but many are still curious about the detail surrounding the effort. Scroll down to learn more about the child tax credit plan, and find out if you qualify for the payments.

Who Qualifies?

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.

How Much You Get

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.”

When Do The Payments Begin

The Child Tax Credit payments 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. August is the only month in which the payment goes out on the 13th, as the 15th of August falls on a weekend.

How Long Will Payments Last?

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.

How To Get Your Payment

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.

Child Tax Credit Extension Plan

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.

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.

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