GREENSBORO, N.C. — More checks are coming. The American Rescue Plan expanded the Child Tax Credit in several ways.
Change #1: 17-year-olds are now included.
Change #2: The credit is now between $2,000 to $3,600 per child.
Change #3: You can get the tax credit BEFORE you file taxes. Monthly payments begin in July.
Change #4: The thresholds for phasing out increased (people who make more will not get more than they have in the past).
Families can receive $3,000 for each child from 6 to 17 years of age
and $3,600 for each child under the age of 6 for the 2021 tax year.
Normally, taxpayers would have received the money when they filed their tax returns and claimed the credit. Now, you don't have to wait until next year, the government is sending it out in monthly installments.
When do the monthly payments start? The IRS commissioner confirmed the timeline to lawmakers during a hearing this week.
Ohio Senator Sherrod Brown: The expectation of the other committee members and I is that the credits would go out monthly and start in July. So, a simple question is, are you ready to do that?
IRS Commissioner Charles Rettig: Yes. And if we can't, we will notify you and the committee.
WHAT YOU CAN EXPECT AND WHEN
The plan is to do monthly installments of $167 to $300, depending on your Adjusted Gross Income. The checks start coming in July and run through December. The remainder of the credit, you will then claim when you file your 2021 taxes.
Also in July, Commissioner Rettig says the IRS will have an online portal so you can update your income, marital status, and the number of qualifying children.
WHAT IF YOU DON’T WANT THE CHECKS?
From what we know now, the portal will allow you to choose not to get the checks and instead take the full child tax credit during tax time.