The American Rescue Plan (ARP) included an expanded Child Tax Credit (CTC). It will give most families $3,000 to $3,600 per child this year, even if your family has little to no income. Starting today, July 15 through December 2021, families will get monthly payments to help with the costs of raising children. They can get up to:
- $3,600 ($300 a month) per child for children ages 0 to 5
- $3,000 ($250 a month) per child for children ages 6 to 17
Families will get the remaining balance when they file their 2021 taxes in Spring 2022.
The Child Tax Credit will not affect Medicaid, SNAP/Food Stamps, TANF Cash Assistance, SSI, or other public benefits.
Monthly payments will be delivered via direct deposit to the bank account that the IRS has on file or sent to a family’s mailing address on or around the 15th of every month.
To be eligible, children must:
- Have a Social Security Number.
- Live with you for at least half of the year in the United States.
- Be under age 18 as of December 31, 2021.
Children are eligible if they are your children, adopted children, stepchildren, half-siblings, foster children, grandchildren, nieces or nephews, or certain other relatives.
You do not need to have any earnings to get this credit. Families will qualify for full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for married and filing people jointly.
88% of America’s children will automatically receive the CTC benefit because their families filed their tax returns in 2019 or 2020 or used the non-filers portal last year to claim a stimulus check. As a result, these families will not need to take any action to receive the CTC.
Families who haven’t filed taxes recently will have to take some additional action to sign up. Use the CTC Non-Filer Sign-Up Tool ASAP!