Child Tax Credit Checks Arrive in July
The Child Tax Credit is a tax benefit to help families who are raising children. The federal government is sending monthly checks out starting in July. The tax credits are a part of the $1.9 trillion coronavirus relief package, and eligible families can receive as much as $3,600 for each child under the age of 6 and $3,000 per child between the ages of 6 and 17.
Do I qualify for the Child Tax Credit?
Most families with kids qualify, but there are income limitations. For example, couples making less than $150,000 and single parents or heads of households making less than $112,500 will qualify. Otherwise, families with high incomes may receive smaller or no credits. For the most part, families with children will receive the tax benefit, and if you’re curious what your tax benefit is, use this online calculator to help.
Does my child qualify?
The child tax credit is only available to qualifying children. A qualifying child is a child who qualifies as a dependent for tax purposes. In this case, a qualifying child can be your son, daughter, stepchild, adopted child, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them, for instance, your grandchild, niece, or nephew. A qualifying child must live with you for over half the year, provide less than half of his or her own support, be a U.S. citizen, resident, or national, and have a Social Security Number. In the meantime, if you are unsure if your child qualifies you can visit the Does My Child/Dependent Qualify for the Child Tax Credit? Page at the IRS website.
How do I make sure I receive my payment?
Most likely, you won’t do anything to receive the Child Tax Credit payments. If you filed taxes for 2020 and 2019 or received a stimulus check, you’re all set and the IRS will automatically send you monthly payments.
If you did not file your taxes this year or last year, you can sign up through the IRS Non-filer Sign-up Tool.
When will I receive the monthly payment?
If you receive payments by direct deposit you will receive your first payment on July 15, 2021. Afterward, payments will go out on the 15th of every month. However, if you haven’t provided the IRS with your bank account information on a recent tax return, you’ll receive a check around the same time to the address the IRS has for you.
Can I opt-out?
The IRS says that taxpayers who don’t want the advance payments can opt-out and receive them when they file their taxes for 2021. Taxpayers can also update their information about changes in income, filing status, or a number of qualifying children when the online portal becomes available.
If you didn’t make enough to be required to file taxes in 2020 or 2019, you can still get benefits. Low-income families with children are also eligible for the tax credit.
Thanks for reading,
Cam Corbet is the Marketing and Communications Manager for Northwest Health Services and works with healthcare professionals to provide education on important health issues.