Starting on July 15, 2021, parents of young children will start receiving payments from the government as part of the Advance Child Tax Credit. This is an ongoing monthly payment that goes from July to December 2021. The IRS is sending out these payments based on your most recent tax return.
What is the Child Tax Credit?
Back in March, President Biden signed the American Rescue Plan, which included an increase in tax credit for children. Part of this tax credit is providing funds throughout the year rather than just with your tax return.
The maximum credit is $3,600 for children ages 6 and younger ($300 a month) and $3,000 for those between the ages 6 and 17 ($250 a month.) These payments will be sent like the previous stimulus payments, with most receiving it via direct deposit to their bank account.
When Will I See the Tax Credit in my Account?
All payments are expected to be sent on the 15th of each month, or if that date falls on a weekend or holiday, the nearest business day.
With this first payment, we ask our members for patience as we make sure our system works properly with the tax credits coming in. If the IRS has been provided with incorrect information, including incorrect account numbers, it will take time to correct these issues. This might include you needing to contact and correct the information with the IRS.
What If I Don’t Want This Money?
If you don’t want the tax credit, you can unenroll by contacting the IRS and following their unenrolling process. It’s too late to unenroll from the July payment, but if you complete it by August 2, the August credit will not be paid.
Information about the Child Tax Credit
FAQs about the Child Tax Credit