The IRS announced this week that it’s sending letters to 36 million families who may qualify for the expanded child tax credit that will begin going out in mid-July.
Low- and middle-income parents can expect to receive $3,000 for every child ages 6 to 17 and $3,600 for every child under age 6 under the expanded child tax credit, which was authorized earlier this year by President Biden’s coronavirus relief bill.
The expanded amounts are tapered off once income hits $75,000 for individuals and $150,000 for married couples.
The IRS is notifying families who may be eligible based on information they submitted to the agency on their 2020 federal income tax return, or 2019 return if they have not submitted for last year yet.
If families earn too much to qualify for the sweetened tax credits, they can still receive the $2,000 credit for their children if their income level is below $200,000 for individuals and $400,000 for married couples.
Families will receive a monthly payment – roughly $250 to $300 per child – instead of an annual lump sum. Half of the credit will be paid out beginning July 15. From there, the IRS will deliver the monthly payments on the 15th of each month through December 2021.
