Ever since President Biden signed the American Rescue Plan that included monthly cash payments for parents, people are wondering when those would be sent.
Well, a few weeks ago the IRS had announced the payments may be delayed for the July deadline.
But now, we have a much better update (and better news)…
As of April 13, 2021 The IRS Commissioner Charles Rettig said in testimony before Congress that the IRS fully expects to launch the portal by July 1 as required under the law, with advance payments going out on a monthly basis to eligible families beginning in July.
Yay! That is great news!
That means many families who qualify for the child tax credit should receive six payments in 2021, one each month from July through December.
How much do you qualify for?
The American Rescue Plan offers American families and increased child tax credit that goes from $2,000 per child to $3,000 per kid ($3,600 for children under age six), 17-year-olds qualify, and the credit is fully refundable.
The amount depends on your income status, dependents and filing status.
You can use the Child Tax Credit Calculator Here to see exactly how much you’d qualify for.
The American Rescue Plan also requires the IRS to develop an online portal so that you can update your income, marital status and the number of qualifying children.
With that being said, expect hiccups and delays due to the IRS being understaffed and the new system needing to be made.
Also, people who want to opt out of the advance payments and instead take the full child credit on their 2021 return could do so through that same online portal.