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Tax Day has come and gone but there’s an important change to know about this year that’s part of Biden’s American Rescue Plan that was passed in March. The advance child tax credit program is part of the administration’s $1.9 trillion economic aid package and about 39 million American families are eligible.
“The #IRS Advance Child #Tax Credit payments will begin this #summer,” the IRS posted on Instagram. “These changes will help many #families receive up to $3,000 per child between 6 and 17, and $3,600 per child under 6. We urge people with children to file your 2020 taxes soon to make sure you get the Child Tax Credit payments. Click the link in our bio to learn more.”
Starting July 15, families may be eligible to receive payments of up to $300 a month through the newly expanded child tax credit. This new plan increases the tax benefit from $2,000 to $3,600 for younger children and to $3,000 for older children for the 2021 tax year.
Instead of having to wait until the following year when you file taxes, you’ll be able to receive an advance on half of what you’re entitled to get. A family can be eligible for $300 per child under the age of 6 and $250 per child for those ages 6-17 (the relief checks end when a child turns 18).
The amount may also be smaller depending on your income, so the IRS urges taxpayers to file a return as soon as possible in order to get the appropriate amount. Checks will be automatically deposited from July to December for those who have a bank account on file with the IRS.
And for those who don’t like the idea of an advance payment, there’s also an option to opt out and receive the full sum of the child tax credit until next year.
Visit the IRS website for more information on the advance child tax credit payments and other related topics.