Child Tax Credit Rollout Begins
The first monthly payment of the Child Tax Credit were issued today. Parents will receive monthly payments from July to December, which total half the credit amount and will claim the other half on their 2021 income tax return. Payments will either be directly deposited to your bank account or mailed to your residence. The monthly amount for children age 5 and under is up to $300 per child and up to $250 per child for children ages 6 to 17. It is important to note that these changes apply to tax year 2021 only.
Prior to 2021, families could claim a credit up to $2,000 per child under the age of 17. This year, Congress increased the credit to $3,000 for children ages 6 to 17 and $3,600 for children under age 6. Hoosiers who filed tax returns for 2019 or 2020 or received a stimulus check from the IRS will get this tax relief automatically. Low-income families who did not make enough to be required to file taxes in 2020 or 2019 can also get this benefit through the Non-Filer Sign Up Tool.
The IRS created two new online tools to help families with understanding and managing the Child Tax Credit: Advance Child Credit Eligibility Assistant and Child Tax Credit Update Portal. The agency also created a FAQ page that cover more questions/topics. Additionally, the White House has created Child Tax Credit Explainer (pdf) for ease of understanding the program.