The Internal Revenue Service will disburse the enhanced Child Tax Credit payments every 15th of the month, starting this July.
Many individuals are still pushing for a fourth stimulus check. While the clamor for it has yet to produce developments, eligible families will soon receive another payment in the form of the 2021 Child Tax Credit.
The enhanced CTC is part of the $1.9 trillion stimulus package, which U.S. President Joe Biden signed into law last March. This payment will provide families with extra funds each month starting this July until the end of the year, leading to the tax refund in 2022.
On Wednesday night, the IRS and the Treasury Department said that they have already disbursed the first installment of credits to tens of millions of families. CNN consequently released some of the details about the latest relief payment.
How much the payments will be
The Child Tax Credit 2021 will provide eligible families up to AU$4,825 for each child under the age of 6. As for aged 6 to 17, household heads may receive up to AU$4,021 per child.
The publication noted that these figures are an increase from the regular CTC. Before, parents received only up to AU$2,680 per child up to age 17.
It is worth noting, though, that the monthly payments from July to December will only reflect half of the total credit. This means that each eligible American may receive either AU$333 or AU$399 for each child.
The other half of the CTC will be given upon filing the 2021 taxes next year. This is why parents may also choose to receive the credit in full in their respective 1040s in 2022.
Who are eligible for the enhanced Child Tax Credit
Millions of families will benefit from the expanded Child Tax Credit. CBS News noted, however, that not all will qualify to receive the payments.
As explained, the credit has an income cutoff. It is AU$100,528 for single taxpayers, and AU$201,506 for joint filers.
The payments reduce by AU$67 for every AU$1,340 excess in the income cutoff. Accordingly, the payments “phase out” for single taxpayers earning AU$127,335 and joint filers with an income of AU$227,863 and above.
Where to receive the monthly payments
The IRS is sending the payments either via direct deposit or paper check. These are the same modes that the agency utilized in the three previous stimulus checks.
Reports said that eligible individuals whose bank account details are already with the IRS, they will receive their respective Child Tax Credit payments via direct deposit. But, if not, the agency will mail the check payments.
Images courtesy of CBS News/YouTube