If you are a parent, there is a very good chance you’re about to receive money in monthly payments for every child you have that is 17 years of age or younger. If you are thinking, “What!?” or “Really?”, watch the video above and read on to learn more.
The 2021 Child Tax Credit is money for people who are raising children. It’s an expansion of the existing federal child tax benefit made possible through the American Rescue Plan Act, an economic relief legislation.
Beginning this summer, half of the total Child Tax Credit amount will be sent in advance monthly payments 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. You then claim the other half when you file your 2021 income tax return.
No action is required in order to receive automatic payments if you: 1) have filed taxes for 2019 or 2020; or 2) have signed up for a stimulus payment from the IRS.
Please note these two important pieces of information:
- You may be eligible for Child Tax Credit payments even if you have not filed taxes recently. This year, Americans were only required to file taxes if they earned $24,800 as a married couple, $18,650 as a Head of Household, or $12,400 as a single filer. If you had total income in 2020 below those levels, you can sign up to receive monthly Child Tax Credit payments using a simple tool on the IRS’s website: the non-filer sign-up tool.
- Receiving Child Tax Credit payments will not change the amount you receive in other Federal benefits like unemployment insurance, Medicaid, SNAP, SSI, TANF, WIC, Section 8, SSDI or Public Housing.
You can unenroll if you want to get the full amount of your child tax credit when you file your 2021 tax return and get your refund. Other circumstances where unenrolling is recommended include families who share custody of children and claim the children alternate years or families that live outside of the U.S. for more than half of the year.