The Child Tax Credit Has Started

The American Rescue Plan included a $3,000-$3,600 tax credit for families with children. Most families will receive this credit automatically. However, there are an estimated 4 to 8 million children whose families will not receive these payments automatically. In order to receive payment, families who did not file tax returns or who did not sign up to receive stimulus checks will need to register online with the IRS Non-filer Sign-up Tool.

The Largest Tax Credit Ever

The Child Tax Credit in the American Rescue Plan provides the largest Child Tax Credit ever and historic relief to the most working families ever – and as of July 15th, most families are automatically receiving monthly payments of $250 or $300 per child without having to take any action. The Child Tax Credit will help all families succeed.

The Breakdown:

$3,000 per child 6-17 years old

$3,600 per child under 6 years old

All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household)

Normally, tax relief for the year only comes the following year when you file your taxes, no matter how much you need it now. This year, most families started getting the money in July.

For every child 6-17 years old, families will get $250 each month, and for every child under 6 years old, families will get $300 each month.

The 80% who get their refunds from the IRS through direct deposit will get these payments in their bank account on the 15th of every month until the end of 2021.

People who don’t use direct deposit will receive their payment by mail around the same time.

PLEASE NOTE: If you didn’t make enough to be required to file taxes in 2020 or 2019, you can still get benefits.

Low-income families with children are eligible for this crucial tax relief – including those who have not made enough money to be required to file taxes.