(NEXSTAR) – The first monthly child tax credit payment under the Biden administration’s American Rescue Plan will be deposited in accounts of families across the country this week.
The first payment is scheduled for Thursday, July 15, but Nexstar’s WDAF reports that some parents in Kansas and Missouri have already received their deposits.
The child tax credit has increased from $2,000 per child to $3,000 per child under the American Rescue Plan. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously, children had to be 16 or younger.
Up to half of that credit will be distributed over the final six months of this year, meaning a typical parent of one kid over 6 can expect a $250 payment later this month as the first of six installments of the advanced payment of $1,500. There are also phase-outs on the increased benefits based on income.
As with stimulus payments, the vast majority of eligible Americans won’t have to deposit a check to get their advanced credit. The IRS says direct deposits will be made into the bank account currently on file with the agency. Only those who are not enrolled for direct deposit will get a physical check.
If you’ve already filed your taxes for 2020, there’s nothing for you to do but wait for your payout. Here is the payment schedule from the IRS:
- July 15
- Aug. 13
- Sept. 15
- Oct. 15
- Nov. 15
- Dec. 15
Do I qualify for child tax payments?
Still unsure if you qualify for the expanded child tax credit? Use the calculator below to estimate how much you might receive in periodic payments beginning July 15:
Want to manage your payments? The IRS has created a Child Tax Credit Update Portal.
For most, the credit is based on your 2020 tax information. If you experienced unemployment last year or saw a big raise in 2021, you could potentially see your salary move above credit phase-out levels in 2021, meaning you are getting advanced payments that you won’t actually be owed when taxes are filed next year. In theory, this could leave some credit recipients needing to pay back some of the money next year.