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Child Tax Credit monthly payments to begin rolling out July 15

Susan Tompor, Detroit Free Press on

Published in Business News

More: Tax return deadline is May 17: How to get extra cash, why filing is vital for parents

A new feature of the Child Tax Credit is the advance monthly payouts, which are to run from July through December.

The goal is to help families pay bills now, instead of waiting for money to arrive next year.

Families will receive that money by direct deposit, a check or prepaid debit cards, according to the IRS on Monday.

IRS and U.S. Treasury said the monthly payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday.

"Families who receive the credit by direct deposit can plan their budgets around receipt of the benefit," according to an IRS statement Monday.

 

The expanded credit is worth up to $3,000 per child a year for children ages 6 to 17.

The credit offers an extra $600 — providing up to $3,600 — for each child 5 and younger. Filing a tax return, experts say, lets the IRS know where to send your payment and how many children you have. The amount was temporarily increased under the American Rescue Plan Act for tax year 2021.

The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half, according to the IRS statement.

The IRS also noted that about 165 million Economic Impact Payments, valuing a total of $388 billion, have been issued since March 12 as a part of the American Rescue Plan.

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