When Do the Monthly Child Tax Credit Payments Start Going Out?
Parents in the U.S. who have children under 18 years old should be prepared for their tax credits to be different in 2021. Not only has the maximum dollar amount for a child tax credit increased from $2,000 to $3,000 ($3,600 for children under six), but the first half of that will be disbursed monthly from July through December 2021. Not all families qualify to receive a tax credit for dependent children. There are income limits for the child tax credit this year. If you think that you are eligible for the enhanced child tax credit but havent filed taxes in either 2019 or 2020, you need to give your information to the IRS. How monthly child tax credits work  The major change in the child tax credit, other than the maximum amount available, is how and when you will receive child tax credits. Usually, the child tax credit is something parents claim on their taxes to reduce their taxable income. Article continues below advertisement  Source: Getty  For 2021, families with dependent children will receive the first half of the total child tax credit in the form of monthly payments. These are direct deposited, for those who have direct deposit enabled with the IRS, or sent via paper check or debit card. Article continues below advertisement  The monthly child tax credit payments will start on July 15. Individuals with direct deposit will likely see the money almost immediately, while individuals receiving paper checks might have to wait. The age of each child as of December 31, 2021, is how the payment amount is determined. Each child under age 6 as of that date qualifies the family for $300 per month in tax credits, while children aged 617 qualify for $250 per month. Article continues below advertisement