American families begin receiving advance child tax credit payments

American families have started to receive monthly Child Tax Credit payments as direct deposits begin posting to bank accounts and checks arrive in mailboxes, the IRS announced in a News Release.

Under the American Rescue Plan (ARP Act or ARPA; PL 117-2), each Advance Child Tax Credit (CTC) payment can be as much as $300 per month for each child under age 6 and $250 per month for each child ages 6 through 17.

First batch of advance CTC payments. This first batch of advance CTC payments, worth roughly $15 billion, was sent to about 35 million families across the country. About 86% of the payments were made by direct deposit.

Unless they unenroll, anyone who receives a payment in July 2021 will also receive a payment on the 15th of each month for the rest of 2021. See IRS provides information on Child Tax Credit eligibility (07/07/2021).

Use tools provided. The IRS urged individuals who normally aren’t required to file a tax return to use the tools available on IRS.gov to help:

• determine their eligibility for the Advance Child Tax Credit, or

• file a simplified tax return to sign up for the payments as well as Economic Impact Payments, and other credits they may be eligible to receive.

See, IRS provides additional online tools, information about advance child credit payments (06/23/2021).

Additional information is available on the Advance Child Tax Credit 2021 webpage.

If you have questions about how the Child Tax Credit Payments will impact you contact an advisor today. FIND A LOCATION