Tax Day and Child Tax Credit Update:
Families to receive monthly payments starting July 15; Today is tax filing day
Tax Day 2021: Today is the Last Day to File Your Taxes! Like last year, the IRS pushed Tax Day back this year because of the pandemic. But the big day is finally here, so your 2020 federal tax return is now due within hours.
Qualified families will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. The Treasury Department said Monday that 39 million families are set to receive monthly child payments beginning on July 15.
The payments are part of the current $1.9 trillion coronavirus relief package, which expanded the child tax credit for one year and made it possible to pre-pay the benefits on a monthly basis. Nearly 88% of children are set to receive the benefits without their parents needing to take any additional action.
Qualified families will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. The child tax credit was previously capped at $2,000 and only paid out to families with income tax obligations after they filed with the IRS.
But for this year, couples earning $150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit. The benefits total $3,600 annually for children under 6 and $3,000 for those who are older. The IRS will determine eligibility based on the 2019 and 2020 tax years, but people will also be able to update their status through an online portal. The administration is also setting up another online portal for non-filers who might be eligible for the child tax credit.