IRS Will Be Sending Out $300 Child Tax Credit Payments in July
The Internal Revenue Service (IRS) is on track to send the monthly advanced payments for the Child Tax Credit (CTC) begining in July 2021. The payments can be worth up to $300 per qualifying child.
Who Qualifies for Child Tax Credit (CTC)?
A single filer with children under 17 making up to $75,000 will receive the full payment for each child, while those earning up to $90,000 will get a reduced amount. Joint filers with children making up to $150,000 will get the full credit for their child, while those earning up to $170,000 will receive a smaller amount of the additional credit.
Single filers making over $200,000 and joint filers making over $400,000 will be eligible for the old CTC or $2,000 per child under 17.
The IRS will use your 2020 when determining whether you’re eligible for the credit. The advance payments would be half of what a household is eligible for, while the remaining credit can be claimed on their 2021 tax return.
The CTC was also made fully refundable — another provision lawmakers want to make permanent — which allows taxpayers to still get the credit as a refund even if that is more than they owe in taxes.
How Much Will My Payment Be?
Under current legislation, the CTC increased to $3,000 per child under 18 and $3,600 per child under 6 for the 2021 tax year. Previously, the tax credit was $2,000 per child under age 17.
Half of the credit may be advanced to families over the next six months beginning in July and ending in December. The monthly payments will be $250 for older children and $300 for children under age 6.
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