The IRS and the Department of the Treasure will soon be sending out monthly payments to 90 percent of American families with children under the age of 17. As a provision of the American Rescue Plan, payments will be focused on approximately 39 million households, covering 88% of children in the country.
Here are the Details:
The Child Tax Credit under the American Rescue Plan increases the maximum amount to $3,600 for kids under the age of 6, and up to $3,000 for children between the ages of 6 and 17. The program is structured to be able to make monthly payments throughout the year to qualified families to help ease financial burdens in a sustainable way with the intention of cutting child poverty by more than half.
Recurring payments will be made on the 15th of each month unless the 15th is a weekend or holiday. Qualifying families should request for direct deposit for fast, secure delivery of each monthly payment, which calculates to $300 per month for children under age 6 and $250 per month for each child aged 6 and up. Paper checks and debit cards are also available if preferred.
No action is necessary for most taxpayers, and the IRS and Treasury Department are working to partner with organizations to increase awareness of the benefit. A recent press release credits the teamwork of the IRS, Department of the Treasury, Bureau of the Fiscal Service, and the White House American Rescue Plan Implementation Team with the CTC project.
For more information on the Child Tax Credit and how it affects your bottom line, reach out to me at 201.787.6542.