Millions of families with children will receive monthly payments under the “Child Tax Credit” extension.
Photo: Mark Makela / Getty Images
This Thursday, the Internal Revenue Service (IRS) began sending the first monthly check under the Biden Administration’s “Child Tax Credit” extension, which this year grants a maximum of $ 3,600 per eligible child.
Payments were arranged by third stimulus bill or the “American Bailout Plan”
Increased payments will be sent under the approval of the “American Rescue Plan” in the United States Congress last March.
The law included other provisions for millions of individuals and families economically impacted by the coronavirus pandemic.
The $ 1,400 stimulus check, the exemption and the increase in funds from the Supplemental Nutrition Assistance Program (SNAP), among other aid, are also part of the rescue package.
Six advance payments, one for each month through December
In the case of monthly payments, these will be distributed to eligible families between July and December of this year.
The IRS will issue advance payments of the Child Tax Credit on July 15, August 13, September 15, October 15, November 15, and December 15.
The above represents 50% of the total payment, since the rest of the amount the taxpayer must request in a tax return next year, in cases in which people opt for early deliveries.
One full payment as a refund next year
Beneficiaries have the option to automatically unsubscribe from monthly payments through the tool enabled on the IRS site.
This alternative is recommended in three instances: if your income in 2021 is too high to be eligible for the credit; if someone else (a former spouse or other family member, for example) now qualifies to claim your child or children as dependents, and, if your main household was outside the United States for more than half of 2021.
Who qualifies for the monthly payments?
The total retail amount applies, in the case of singles, to those that generated income of $ 75,000 or less. In the cases of female heads of household, they must have earned $ 112,500 or less to receive the full credit; while the income of married couples filing jointly, must not exceed $ 150,000 of AGI.
From those thresholds, for every $ 1,000 that your income exceeds the limit of the established tax scale, the CTC amount is reduced by $ 50.
“For most people, the modified AGI is the amount shown on line 11 of your 2020 Form 1040 or 1040-SR. Above these income thresholds, the additional amount above the original credit of $ 2,000 Either $ 1,000 or $ 1,600 per child is reduced by $ 50 for each additional $ 1,000 in modified AGI, ”the agency explained on its website.
Children in the family must have a Social Security number to be eligible for monthly payments under the credit. While parents, at a minimum, must have a Personal Taxpayer Identification Number (ITIN).
How much money will I receive?
Checks that the IRS will deposit or send starting today will range from $ 250 to $ 300 per minor.
The payment will be up to $ 300 per month for each qualifying child under age 6 and up to $ 250 per month for each qualifying child ages 6 to 17.
This year, the credit extension grants up to $ 3,600 per child under 6 years old and $ 3,000 for each child between the ages of 6 and 17.
However, the monthly amount per household will depend on the number of minor dependents, ages and income level.
Do I have to take additional actions to request payments?
Most eligible families will receive payments automatically with no additional paperwork required. The IRS estimated that about 39 million households will be sent the money automatically, equivalent to 88% of children in the United States.
In early June, the agency confirmed sending 36 million letters by post to families to inform you of your eligibility for advance payments.
Parents of approximately 60 million children will receive the payments, according to IRS statistics.
For low-income families who are not required to file taxes, the IRS urged them to submit their information as soon as possible through a tax return or through the “Non-filer Sign-up” service on the agency’s website. .
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