Under a new law, signed by President Biden on March 11, 2021, individuals and families with children can get up to $300 per month per child under age 6, and up to $250 per month per child ages 6 to 17. You can receive payments every month starting in July 2021 through December 2021. (If you want to get payments in 2022, you need to file a tax return to receive the rest of the payment.)
Immediate and Positive Social Impact
The Child Tax Credit is designed for low to moderate income families raising children. It has brought significant economic relief to the largest number of working families in the history of America. This is a significant and postive impact. The program reduced monthly child poverty by nearly 30%. CTC's ongoing social impact is large: almost "half of all CTC recipients with household incomes under $30,000 reported they would struggle to afford essentials, such as food, without the advance CTC payments. For a report on the Social and Economic Impact of the Child Tax Credit (CTC) on Maternal Mortality, click here.
Benefits? Who Qualifies?
Benefits range from $2,000-3,600 depending on the child's age and household income. It is important to note that even the lowest-income families with children are eligible for this tax relief - including parents who have not made enough money to be required to file taxes. Note that "not all eligible households received payments. And for some that did, the impact of the payments was diminished by the cost of accessing the funds and time spent waiting to access them." Click this link to use the Advance Child Tax Credit Eligibility Assistant. See: https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant
For those who have not filed taxes, including thsoe who do not need to file, there is a new tool created to help you get these benefits. If you have not filed your taxes in the last two years or did not sign up for Stimulus Payments, you can use the simplified Non-Filer sign-up tool. If you have not filed your taxes and still want to do so, it is not too late. Choosing to file your taxes now can get you benefits ranging from $2,000-20,000 depending on eligibility. Know that filing for the child tax credit will not affect other Federal benefits. Please apply if eligible and have the payments sent directly to your bank account, if you have one...Click this link to see the Child Tax Credit Update Portal. See: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Monthly Payments
Monthly payments will be delivered beginning July 15th, 2021 and will continue to be dispersed on the 15th of every month. Payments will be delivered by direct deposit into your bank account or by mail if you do not have a bank account.
