How the expanded child tax credit payments work

Jul 14, 2021, 9:07 PM | Updated: Jul 15, 2021, 2:07 pm

The Biden administration is beginning to distribute expanded child tax credit payments, giving parents on average $423 this month, with payments continuing through the end of the year.

President Joe Biden increased the size of the tax credit as part of his $1.9 trillion coronavirus relief package, as well as making it fully available to families without any tax obligations. The benefit is set to expire after a year, but Biden is pushing for it to be extended through 2025 and ultimately made permanent.

A closer look at how the payments work and who can receive them:

HOW BIG ARE THE CREDITS?

The credit is $3,600 annually for children under age 6 and $3,000 for children ages 6 to 17. But six months of payments will be advanced on a monthly basis through the end of the year. This means eligible families will receive $300 monthly for each child under 6 and $250 per child older than that.

This is a change from last year, when the credit totaled $2,000 per child. Families who did not owe the government income taxes were also unable to claim the credit, a restriction that Biden and Congress lifted.

ARE THERE LIMITS ON WHO CAN QUALIFY?

The payments begin to phase out at incomes of $75,000 for individuals, $112,500 for heads of household and $150,000 for married couples. Higher-income families with incomes of $200,000 for individuals and $400,000 for married couples can still receive the previous $2,000 credit.

HOW CAN YOU APPLY?

If you filed taxes and the IRS already has your bank account information, the payments should be deposited directly into your account on the 15th of each month. The Treasury Department estimates that 35.2 million families will receive payments in July. If you didn’t file taxes in 2019 or 2020, you might still be eligible for the credit and can apply here: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool.

WHY ARE THE PAYMENTS MONTHLY?

Advocates say the monthly payments can help smooth out an impoverished family’s income, making it easier for them to budget and less dependent on high-interest lenders.

CAN THE MONTHLY PAYMENTS BE STOPPED?

Yes. Some people are used to the child tax credit enabling them to get a refund on their taxes. They might not want the monthly advance and about 1 million people have opted out, according to administration officials. People can unenroll here: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

New home construction encroaches dormant fields owned by Kelly Anderson, left, Thursday, Aug. 18, 2...
Associated Press

Crisis looms without big cuts to over-tapped Colorado River

Arizona and other states face dire consequences if there's no agreement on how to share water from the Colorado River.
16 hours ago
Associated Press

Judge reinstates work requirement in Georgia Medicaid plan

ATLANTA (AP) — In a victory for Georgia’s Republican governor, a federal judge on Friday reinstated a work requirement in the state’s plan to expand Medicaid coverage to more low-income residents. U.S. District Judge Lisa Godbey Wood said the Biden administration’s decision to revoke approval of the work requirement and a related Georgia proposal to […]
16 hours ago
FILE - A man walks in front of the 5th U.S. Circuit Court of Appeals on Jan. 7, 2015, in New Orlean...
Associated Press

Suit alleging off-camera jail beatings revived

NEW ORLEANS (AP) — A federal appeals court cleared the way Friday for a lawsuit to proceed against guards and officials at a privately run north Louisiana jail where an inmate died with a fractured skull in 2015. The lawsuit by family members of Erie Moore includes allegations that guards at Monroe’s Richwood Correctional Center […]
16 hours ago
Associated Press

Watchdog groups call review at US nuclear lab ‘sham’ process

ALBUQUERQUE, N.M. (AP) — The U.S. government is planning to review the environmental effects of operations at one of the nation’s prominent nuclear weapons laboratories, but its notice issued Friday leaves out federal goals to ramp up production of plutonium cores used in the nation’s nuclear arsenal. The National Nuclear Security Administration said the review […]
16 hours ago
Associated Press

16 more states hope to weigh in on Idaho abortion lawsuit

BOISE, Idaho (AP) — Sixteen more states are asking to weigh in on the U.S. Department of Justice’s lawsuit against Idaho over its strict abortion ban. The Justice Department sued the Republican-led state of Idaho earlier this month, saying the abortion ban set to take effect on Aug. 25 violates a federal law requiring Medicaid-funded […]
16 hours ago
U.S. Sen. Joe Manchin of West Virginia speaks to reporters during a roundtable about the sprawling ...
Associated Press

Manchin dismisses critics, embraces ‘hero and villain’ role

CHARLESTON, W.Va. (AP) — Sen. Joe Manchin said he pays no attention to criticism or campaign donations when making decisions about what’s best for West Virginia. Sounding somewhat exasperated when asked whether the dramatic bump in campaign contributions he’s received from oil and gas interests in recent months influenced his voting, the conservative Democrat said […]
16 hours ago

Sponsored Articles

...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
How the expanded child tax credit payments work