As a parent, you are likely eligible to receive the Child Tax Credit. If you are not yet receiving this credit, you may be missing an opportunity to receive up to $300 per child if you qualify. While there are some requirements, an estimated 39 million households with 65 million children – covering almost 90 percent of children in the U.S – will meet the requirements to receive the Child Tax Credit.
Even though initial payments have started to be distributed starting July 15, 2021, you can still apply to receive a Child Tax Credit based upon qualifications.
In this article, we discuss an overview of what the Child Tax Credit is, how much you could qualify for, how to apply for the credit past June, and when you can expect to receive payments if you qualify.
“For working families with children, this tax cut sends a clear message: help is here.” – President Biden
The Child Tax Credit passed as part of the American Rescue Plan Act in March. The Biden-Harris Administration proposed the credit as a way to provide support to low- and middle-income parents who have face financial strain, worsened by the pandemic.. This action meant that all working families would receive the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household) according to the White House website.
How Much You Could Qualify For
There are different amounts families can qualify for based upon factors such as income and age of child. Below are the two types of payment amounts:
- $250 for each child 6 to 17 years old
- $300 for each child under age 6
If you are currently not receiving the Child Tax Credit and believe you may qualify, use this helpful FAQ guide from the IRS website to see if you qualify and what next steps to take to start receiving payments: visit IRS.gov.
How to Apply for the Child Tax Credit
Did you miss the first round of payments sent out July 15, 2021? Do not worry – you still have time to apply for the credit by visiting this helpful sign-up tool located on IRS.gov.
This helpful tool provides information about receiving the Child Tax Credit for those who are not required to file a 2020 tax return, did not file one and do not plan to and have a main home in the United States for more than half of the year.
When You Can Expect the Funds to Arrive
You can anticipate Child Tax Credit payments to arrive monthly around the 15th of each month. The funds started distribution on July 15, 2021 and will end December 2021. You can catch up at a later time if you’ve missed the July payment. Payments will either be mailed or directly deposited into your back account depending upon how you filed your tax return.
Please make sure to encourage parents in your program to receive the payments if you believe they will qualify.