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The IRS sends letters to more than 36 million families who may be eligible for monthly payments under the Federal Child Tax Credit. Under the extended tax benefits, families may be eligible to receive up to $300 per child on a monthly basis from July 15 through December 15.
President Joe Biden’s $1.9 trillion US bailout expanded the child tax credit from $2,000 a year to as much as $3,600 per child. It will also send monthly payments to parents of children under 18, providing what one expert called “a small step toward universal basic income.”
The IRS said it sends letters to eligible families based on their 2019 or 2020 federal income tax return, or if they provided information using IRS.gov’s “no-filing tool” in the past year to register for stimulus payment and qualifications based on that data. The IRS said it will receive a second letter to estimate the amount of the monthly payment, which will begin hitting bank accounts on July 15.
How much can parents get?
The IRS said most families won’t need to take steps to ensure they get the child tax credit. That’s because the agency will base the payments on the tax information they already have. For parents, payments will reach:
$300 per month per child under 6 $250 per month per child aged 6-17
Payments will be issued by the IRS on July 15, August 13, September 15, October 15, November 15 and December 15.
Monthly checks will be provided to families whose adjusted gross income, or AGI, falls under certain income limits. The IRS said these pieces are:
$75,000 or less for unmarried taxpayers $112,500 or less for heads of household $150,000 or less for spouses filing a joint return and eligible widows and widows
The IRS said that the revised AI rate can be found on line 11 of the 2020 taxpayer 1040 or 1040-SAR form.
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