If you have any children ages 17 and under, you may start to receive monthly payments as part of the IRS and Treasury Department’s expanded Child Tax Credit. What does that mean for your family? We’ve got the details.
What is the payment schedule?
Monthly payments from the IRS are scheduled for the 15th of each month, starting July 15th through December 15th, 2021. If the 15th lands on a weekend or a holiday, payments may arrive later. The IRS will send payments via direct deposit, paper checks, and debit cards.
As we receive the electronic files from the IRS, our team will actively and quickly apply all payments. Phone calls or emails are not required for us to deposit the funds and our staff will apply the funds as they are received from the IRS. Due to higher than normal call volume during the release of these payments, we strongly recommend that you use Online Banking or our Greater Texas | Aggieland Credit Union app to check your account balance and review for your child tax credit payment.
How are these new credits different than the previous Child Tax Credit Payments?
Previously, the maximum total amount per child that families could receive for the year was $2,000. Now, under the newly expanded tax credit, qualifying families will receive up to $3,000 total per child ages six to 17 and a total of $3,600 per child under the age of six.
Also, instead of being paid on an annual basis as part of your tax return, the advanced credits will be distributed monthly for this year. Eligible families will see payments of up to $250 per month for each child ages six to 17 and up to $300 per month for each child under six years old.
Who qualifies for the payments?
The credit union does not determine eligibility or payment method of the advanced tax credits.
Credit recipients must have one or more children who turn age 17 or younger in 2021. The amount is fully refundable, which means taxpayers can qualify even if they don’t have earned income or don’t owe any income taxes.
Amounts are reduced (or phased out) for families with incomes over $150,000 for married taxpayers filing a joint return and qualifying widows and widowers; $112,500 for heads of household; and $75,000 for all other taxpayers.
Do I need to do anything to claim the credit?
As long as you’ve already filed your 2020 tax return, no further action needs to be taken.
Learn more about the Advance Child Tax Credit Payments from the IRS website.
What is the payment schedule?
Monthly payments from the IRS are scheduled for the 15th of each month, starting July 15th through December 15th, 2021. If the 15th lands on a weekend or a holiday, payments may arrive later. The IRS will send payments via direct deposit, paper checks, and debit cards.
As we receive the electronic files from the IRS, our team will actively and quickly apply all payments. Phone calls or emails are not required for us to deposit the funds and our staff will apply the funds as they are received from the IRS. Due to higher than normal call volume during the release of these payments, we strongly recommend that you use Online Banking or our Greater Texas | Aggieland Credit Union app to check your account balance and review for your child tax credit payment.
How are these new credits different than the previous Child Tax Credit Payments?
Previously, the maximum total amount per child that families could receive for the year was $2,000. Now, under the newly expanded tax credit, qualifying families will receive up to $3,000 total per child ages six to 17 and a total of $3,600 per child under the age of six.
Also, instead of being paid on an annual basis as part of your tax return, the advanced credits will be distributed monthly for this year. Eligible families will see payments of up to $250 per month for each child ages six to 17 and up to $300 per month for each child under six years old.
Who qualifies for the payments?
The credit union does not determine eligibility or payment method of the advanced tax credits.
Credit recipients must have one or more children who turn age 17 or younger in 2021. The amount is fully refundable, which means taxpayers can qualify even if they don’t have earned income or don’t owe any income taxes.
Amounts are reduced (or phased out) for families with incomes over $150,000 for married taxpayers filing a joint return and qualifying widows and widowers; $112,500 for heads of household; and $75,000 for all other taxpayers.
Do I need to do anything to claim the credit?
As long as you’ve already filed your 2020 tax return, no further action needs to be taken.
Learn more about the Advance Child Tax Credit Payments from the IRS website.
