The Internal Revenue Service and the US Treasury Department announced that the first monthly payment of the expanded and newly advanced US bailout child tax credit will be made on July 15. About 39 million households, covering 88% of children in the United States, are expected to begin receiving monthly payments with no further action required.
The IRS and Treasury also announced that the increased CTC payments will be made on the 15th of each month, unless the 15th falls on a weekend or holiday. Families who receive the credit by direct deposit can plan their budget based on receiving the benefit. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older.
The US bailout increased the maximum child tax credit in 2021 to $3,600 for children under age 6 and $3,000 per child for children ages 6 to 17. The US bailout is expected to lift more than five million children out of poverty. this year, reducing child poverty by more than half.
Households covering more than 65 million children will receive monthly CTC payments by direct deposit, paper check or debit cards, and the IRS and Treasury have committed to maximizing the use of direct deposit to ensure delivery fast and secure. Although most taxpayers are not required to take any action to receive their payments, the Treasury and IRS will continue outreach efforts with partner organizations over the coming months to inform more families of their eligibility.
The announcement represents the latest collaboration between the IRS and the Bureau of the Fiscal Service – and between the Treasury and the White House’s U.S. bailout implementation team – to ensure that aid reaches people quickly. Americans in need as they recover from the COVID-19 pandemic. Since March 12, the IRS has also distributed about 165 million economic impact payments worth about $388 billion as part of the US bailout.
Additional information for taxpayers on how they can access the Child Tax Credit will soon be available at this link on the IRS website.