Over the next few weeks you’ll want to watch your mail closely and be careful to not throw anything away (even if it looks like junk mail).
Because The IRS Is Sending Letters To Families Eligible For The Monthly Child Cash Payments.
Starting today, The Internal Revenue Service is sending letters to 36 million American families that may be eligible for the monthly Child Tax Credit (CTC) payments starting in July.
“The letters are going to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment,” the agency said in a statement on Monday.
The maximum credit in 2021 is $3,600 for children under 6 and $3,000 for children between 6 and 17. Previously, the maximum tax credit was $2,000 per child under 17.
This means that from July 2021 – December 2021 you can get up to $300 per month for children under 6 and $250 per month for children 6-17 years of age. The rest will be applied to your 2021 taxes during tax season in 2022.
The six advance monthly payments will be sent out on July 15, August 13, September 15, October 15, November 15, and December 15.
If you are eligible for the credit, you will receive a second letter listing an estimate of their monthly payments. The amount will be determined by their 2020 tax return. If that return is not available, the IRS will use their 2019 return.
So, keep your eye out on your mailbox for this information. Also, yes, you will be able to opt-out of these monthly payments if you wish to do so once the payment portal opens in July.