Tax season might be over but we are still seeing updates roll out, most recently when the IRS (Internal Revenue Service) and the US Department of Treasury announced changes to the child tax credit programs. More than 35 millions households and low income families across the states will receive monthly payments starting mid July, and covering roughly 88% of children in the United States. The first payments will be sent out on July 15 and continuing on the 15th of every month automatically, unless the 15th falls on a weekend or a national holiday.
It was also announced that the maximum Child tax credit will be increased depending on the child’s age; $3600 for children younger than 6 years (up to $300 monthly payments), and $3000 for children between the age of 6 and 17(up to $250 monthly payments). Most American households can expect to receive funds through this program. Married couples with children filing jointly with adjusted gross income less than $150,000, or $75,000 for individuals will qualify for the full credit.
Most payments will be disbursed via direct deposit, to avoid any delays and confusion, similar to the stimulus payments that took place recently. However, if direct deposit information is inaccurate or not available, checks and debit cards will be delivered to those households. No action is required from parents to receive these payments.
The IRS is currently working on two portals to ensure all families and households have access by July 1st to ensure accuracy of information. This should be a great way for everyone, including non filers, to enter or update their most recent information.