Literally, thousands of families are going to see more in their bank accounts starting on July 15th. Recently announced, the Internal Revenue Service and the U.S. Department of the Treasury have said the first monthly payment of the expanded Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15.
Families Receiving Monthly Payments
Covering 88% of children in the county, credit does impact about 39 million households, that includes Indianapolis, Indiana. In fact, they are slated to begin receiving monthly payments without any further action that is requiring.
For children under the age of 6, eligible families will receive a payment of up to $300 per month. For each child age 6 and above, they can receive up to $250 per month. In fact, this is according to the IRS. On the 15th of each month, the government will make the payments. That is unless the 15th falls on a weekend or holiday.
American Rescue Plan
For children under the age of 6, the American Rescue Plan has increased the maximum Child Tax Credit in 2021 to 3,600. For children between the ages of 6 and 17, it’s $3,000 per child.
In fact, with more than five million children in poverty this year, the goal of the American Rescue Plan is to help them.
Moreover, some Indiana families will not receive the payment.
However, for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, the payments are reducing (phasing out). For heads of households, it is $112,500. Moreover, for all other taxpayers, it’s $75,000.
“Moreover, many taxpayers will not be requiring to take any action to receive their payments. Thus the Treasury and the IRS will continue outreach efforts with partner organizations over the coming months. This is to make more families aware of their eligibility,” read a statement from the IRS
There is additional information on the Child Tax Credit that can be found here IRS.gov/childtaxcredit2021.