Under the American Rescue Plan Act, the Child Tax Credit (CTC) will help many families get advance payments starting July 15, 2021. Important changes made to CTC will only apply to the 2021 tax year.
Key factors to keep in mind:
- Advance CTC payments will be distributed in monthly installments starting July 15, 2021 through December 2021. See payment timeline.
- The credit will include children who turn age 17 in 2021.
- Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.
- Advance payments will be given to eligible taxpayers who filed in 2019 or 2020 and who have a main home in the United States for more than half the year.
If you’re eligible, what will you receive?
- Up to $3,000 (monthly payments of $250) per child 6 to 17 years old
- Up to $3,600 (monthly payments of $300) per child under 6 years old
- All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (or Head of Household)
How will you receive your payments?
If the IRS does not have bank account information to issue you a direct deposit, you will receive your payments by mail. Remember, you can easily deposit a check on the LAPFCU app. If you don’t see your payments on the scheduled 15th of the month, be aware that some payments especially via mail may take 1 to 2 weeks longer. To check payment status or for the latest updates on the Child Tax Credit, please visit irs.gov.
Also, be on the lookout for any suspicious messaging related to CTC or other stimulus payments asking for your personal information. Read easy safeguarding tips on COVID-19 scams or visit our Security Center for more information. If you feel you’ve experienced fraud, call us immediately at (877) 695-2732.
Sources:
irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
whitehouse.gov/child-tax-credit/