Advanced payments for the Child Tax Credit will start being sent out in July.
Americans have started receiving their stimulus checks, but expanded Child Tax Credit payments won’t start going out for four months. The American Rescue Plan expanded a number of tax benefits, including one that provides payments to parents for each child they have. Instead of receiving $2,000 per child, eligible parents will receive $3,600 for every child under 6 and $3,000 for every child over 6 and under 18. To be eligible for the full expanded payments, individuals must have adjusted gross incomes up to $75,000, $150,000 in the case of a joint filer. For every $1,000 that a person’s income exceeds the threshold amount, the credit will be reduced by $50. The Child Tax Credit isn’t new, but instead of people receiving it in a lump sum when they file their taxes, taxpayers will receive advanced periodic payments. Beginning in July, eligible taxpayers will periodically receive payments equivalent to 1/12 of their total credit per month.
