Today, June 21, 2021, is National Child Tax Credit Awareness Day, designated by The White House to ensure that all eligible households stay on the lookout for their expanded Child Tax Credit (CTC) payments, which will start being distributed in July. Part of the current administration’s American Rescue Plan, the expanded Child Tax Credit has been increased in 2021 to $3,600 per child under the age of 6 and $3,000 for children from ages 6 to 17. One-half of the CTC will be credited to the 2021 federal tax returns of eligible households and the other half will be distributed in six equal installments (either $250 or $300 per child) from July through December this year.
The Internal Revenue Service (IRS) notes that qualifying households will soon receive a personalized letter indicating the estimated amount of their monthly CTC payments, to be disbursed on the following schedule:
- Thursday, July 15, 2021
- Friday, August 13, 2021
- Wednesday, September 15, 2021
- Friday, October 15, 2021
- Monday, November 15, 2021
- Wednesday, December 15, 2021
Approximately 40 million households will benefit from the CTC in 2021, including nearly 90 percent of all American children, many of whom will be lifted above the federal poverty line by this expanded credit. Most don’t have to do anything to get their payments, which will be made through either direct deposit, paper check, or pre-paid debit card.
Still, to make sure every family that qualifies receives the expanded CTC, including those not required to file a tax return, the IRS has established an online portal to confirm eligibility and access payments. For more information on the expanded CTC and the American Rescue Plan’s additional investment in America’s children and families, such as the Child Care and Development Block Grant, the Child and Dependent Care Tax Credit, and the Paid Leave Tax Credit, please refer to this recent Fact Sheet from The White House Briefing Room.
