The advancement on the child tax credit payments are set to start next month.
The child tax credit payments, which were set up and expanded under the American Rescue Plan passed earlier this year, amount to $3,000 annually per child ages 6 to 17 and $3,600 annually for children under 6.
Eligible families will receive half of their credit in the form of monthly payments of up to $250 per school-age child and up to $300 per child under 6 from July through December 2021. The other half will be paid out when they file their 2021 taxes. The credit is income-based and starts to phase out for individuals earning more than $75,000 a year or $150,000 for those married filing jointly.
It’s important for families to know that this is an advance of a tax credit they would normally get around tax time. For some families, it may be more ideal to just use the tax credit at tax time instead. Here’s what you should know and how to unenroll, if desired.