WASHINGTON D.C - Starting on July 15th and till the end of the year 92 percent of U.S families will begin receiving advance and increased Child Tax Credit payments from the IRS. The change comes as part of Biden's American Rescue Plan aimed to combat child poverty across the nation.
Here’s how it works:
Families who qualify will receive 50 percent of their 2021 Child Tax Credit ahead of time via monthly payments, and can claim the other 50 percent on their taxes next year.
That's a total of $3,600 for each child 5 years old and under, and an additional $3,000 for each child ages 6 to 17.
Before the change families could only claim a tax credit of $2,000 per child.
Monthly payments of $250 or $300 dollars for each child are set to hit your account through direct deposit starting on July 15th and will continue throughout the year.
If you are not set up for direct deposit you can expect a paper check.
The Biden Administration calls the change a huge accomplishment, one that will make a lasting impact.
"The American Rescue Plan will lift half of America’s children out of poverty... it will be felt by families and communities and by extension of our country for generations to come," said Vice President Kamala Harris.
Those families who qualify should have already received a letter in the mail from the IRS. However, if you did not file taxes last year you may still be able to receive payments.
Anyone who is set to give birth between now and throughout 2021 will also qualify for the increased Child Tax Credit.
For more information or to learn how you can opt out of monthly payments in favor of one large payment come tax time go to: childtaxcredit.gov
Right now the new and increased tax credit is only for the year 2021.
However, President Biden is proposing to make it last for the next four years, while lawmakers in Congress are working to make the change permanent.