GREENSBORO, N.C. — The 15th of the month is going to be known as a payday for parents. The IRS will be sending parents of kids less than 17 years old a monthly payment.
The payments start in July and will continue every month until the end of the year. The IRS payday is the 15th, although there are two months where that falls on a weekend, the IRS is figuring out when the payments will post.
The parents are getting money because it is an advance on the Child Tax Credit for the 2021 tax year. This credit allows families to get up to $3,600 for each child under 6 years old and $3,000 for each child 6 to 17 years old.
Instead of waiting until next year to claim the tax credit, the government is going to send you some of the money in advance. There will be six total payments, which will total up to half the total amount. The rest will be applied when you file taxes.
Taxpayers can expect payments on the 15th of each month between $250 and $300 per child.
“The first monthly payments of the expanded child tax credit will be made on July 15th to 39 million households covering more than 88% of children in the United States,” said White House Press Secretary Jen Psaki.
You don't need to do anything to get these payments, they're going to come to you automatically starting in July. Right now, it appears you'll get payments through direct deposit or by check.
The IRS is still working out details.
Here are two common questions that have the same answer.
#1 What if I need to update my information with the IRS about my income, filing status, or the number of children?
#2 What if I don't want the payments now and I want to claim the entire tax credit on my taxes next year?
The answer to both of these questions is the IRS is planning on creating an online portal so you can put the information in that changed or you can opt-out of the payments.
The portal is not up and running yet, we'll keep an eye out for it and let you know when it's active.