Business

/

ArcaMax

Child Tax Credit monthly payments to begin rolling out July 15

Susan Tompor, Detroit Free Press on

Published in Business News

Parents can look forward to some extra cash beginning July 15, as the IRS rolls out an expanded tax break for millions of families.

Parents will receive a monthly payment of as much as $300 per child for little ones 5 years old and younger.

The payout for the newly-revised Child Tax Credit is up to $250 per month for each child ages 6 through 17.

The scope of the Child Tax Credit has been expanded significantly to cover children ages 17 and younger, instead of stopping at 16.

About 39 million households — which would cover 88% of children in the United States — are set to begin receiving monthly payments in 2021 without doing anything, the Internal Revenue Service said Monday morning.

The IRS has information from 2020 tax returns to use to issue the advance payments for the Child Tax Credit for 2021.

 

Families would receive payments for half of this year and then must file a tax return next year to receive the rest of the money.

But many families who typically do not need to file a return based on a low income are being encouraged to file a 2020 return soon to provide the IRS with enough information to send them money each month for the Child Tax Credit.

"While most taxpayers will not be required to take any action to receive their payments, Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility," the IRS stated.

More: Some people are waiting longer for tax refunds: Why they're delayed

...continued

swipe to next page
©2021 www.freep.com. Visit at freep.com. Distributed by Tribune Content Agency, LLC.