Today is Child Tax Credit Awareness Day! Here are some important things you need to know:
What is the Child Tax Credit? The American Rescue Plan signed in March as part of the stimulus relief bill includes a temporary expansion of the child tax credit for 2021 that will offer $3,000 for each child ages six to 17, and $3,600 per child under six to eligible families. The benefit will be disbursed in two installments. The first half will be paid in monthly payments of $250 or $300 starting July 15 and continuing through December. The other half will be claimed on next year’s tax return.
Who will it affect? The IRS estimates that about 39 million households will begin receiving monthly payments. You can take full advantage of the credit if your modified adjusted gross income is under $75,000 for single filers, $150,000 for married filing jointly and $112,500 for head of household filers.
How to sign up if I didn’t file taxes in 2019 or 2020? If you filed your 2020 or 2019 taxes, you will not need to do anything further to begin receiving your payments. Otherwise, you must file for the credit by using the IRS Non-Filer Portal Tool located here.
For additional questions, please visit childtaxcredit.gov.