The Internal Revenue Service and the U.S. Department of the Treasury announced that the first monthly payment of the expanded and newly advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. Roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.
The increased CTC payments will be made on the 15th of each month from July to December of 2021, unless the 15th falls on a weekend or holiday. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child age 6 and above.
The American Rescue Plan increased the maximum Child Tax Credit in 2021 from $2,000 to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17. The American Rescue Plan is projected to lift more than 5 million children out of poverty this year, cutting child poverty by more than half.
To be eligible for the full amount of the increased CTC, households must have an adjusted gross income of $75,000 or below for an individual, or $150,000 or below for married filing jointly. The credit is reduced by $50 for every $1,000 in income over that threshold.
Households covering more than 65 million children will receive the monthly CTC payments through direct deposit, paper check, or debit cards. If you paid your taxes via direct deposit or have previously received a refund or stimulus payment via direct deposit, the IRS will use that information to deliver this new credit. Most taxpayers will not be required to take any action to receive their payments.
Additional information about how you can access the Child Tax Credit will be available soon at IRS.gov/childtaxcredit2021.