For lots of families, July 15th marks the halfway point of summer vacation. But this year, July 15th means a little more for families who qualify for the enhanced Child Tax Credit.
Recently signed into law by President Biden, the new version of the Child Tax Credit has increased from $2,000 per qualifying child to $3,600, and half that amount will be paid out in monthly installments starting July 15, 2021 and continuing through December of this year.
So how do you know if you qualify for the new Child Tax Credit?
Requirements To Qualify For The New Child Tax Credit
Your family will qualify for the new Child Tax Credit if you have children under the age of 17 as of December 31, 2021 AND if you fall below these income thresholds:
- Single taxpayers—$75,000 or less
- Heads of households—$112,500 or less
- Married couples filing a joint return—$150,000 or less
- Qualified widows and widowers—$150,000 or less
But don't despair if you earn and file taxes for more than those qualifying amounts. You may still qualify for the standard $2,000 Child Tax Credit if you're:
- A single parent earning up to $200,000
- A married couple earning up to $400,000
Earning above these thresholds will disqualify you for both the regular and enhanced Child Tax Credits.
How Much Will I Get For Each Child?
If you qualify for the enhanced Child Tax Credit, every month from July through December, you'll receive the following:
- $300/month for each child under the age of 6
- $250/month for each child between the ages of 6 and 17
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How Will I Receive Child Tax Credit Money?
If you have already given your bank account information to the IRS for previous automatic deposits, you will receive your Child Tax Credit money through your bank.
If you have not previously given the IRS your bank account information, you will be mailed a check each month through December.
If you are a low-income family not required to file taxes, the IRS has created a portal to sign up to receive the new Child Tax Credit.
When Will I Receive My Advanced Child Tax Credit Payments?
Starting in July, the IRS will send out automatic bank account payments and checks halfway through each of the next 6 months.
- July 15
- August 13
- September 15
- October 15
- November 15
- December 15
How To Check If You Qualify For The Enhanced Child Tax Credit
To help you determine if you qualify for advanced Child Tax Credit payments, you can go to the Child Tax Credit Update Portal.
You will also be able to unenroll for advanced payments if you'd like to receive your entire Child Tax Credit payment when you receive next year's tax return and change your bank account information for future payments.
What If I Don't Qualify For The CTC But Am Receiving Payments Anyway?
The IRS has already sent information to millions of American families who are eligible for these advanced Child Tax Credit payments based on their 2019 or 2020 federal income tax return.
However, if you received a letter or start receiving payments even if you don't qualify, you'll want to visit that Update Portal and opt out so you don't end up having to pay that money back to the IRS.
What will you do with your Child Tax Credit cash??