39 million households with children will receive payments under the Biden Administration’s “Child Tax Credit” extension.
Photo: JEWEL SAMAD / AFP / Getty Images
For eligibility for the extension of the “Child Tax Credit” (CTC) that the Internal Revenue Service (IRS) will begin to distribute in monthly payments as of July 15, apply the same income rules used to set the third stimulus check amount.
In addition to the number of minors in the household, the agency will assess the adjusted gross income in the tax return available from the parent or parents to establish the amount of money to be disbursed.
Income Levels Applicable to Receive the “Child Tax Credit” under the Biden Program
The provisions in the “American Rescue Plan” under which the funds are extended and advanced for the credit stipulate that the entire payment applies to individuals with children and gross adjusted income of $ 75,000 or less; $ 150,000 or less for couples, and $ 112,500 for single mothers or heads of household.
The gradual reduction or the funds for the credit begin to reduce for people who report higher income than the previous ones.
Specifically, for every $ 1,000 that your income exceeds the limit of the established tax scale, the CTC amount is reduced by $ 50.
Sending payments under the credit will begin on July 15
The IRS prepares to deposit or mail monthly payments between $ 250 and $ 300 per minor under the Biden Administration program in the middle of next month.
Parents who are not required to file taxes, but are eligible for the funds, will be able to alert the agency through one of the portals that will be open online from July 1.
Up to a maximum of $ 3,600 for each child under the age of 6
Under the third stimulus bill, passed in the United States Congress last March, parents can get up to a maximum of $ 3,600 for each child under 6 who is claimed as a dependent.
Advance payments will be processed one for each month between July and December.
“The IRS and Treasury also announced that increased CTC payments will be made on the 15th of each month, unless the 15th is a weekend or holiday. Families who receive the credit through direct deposit can plan their budgets around receiving the benefit. Eligible families will receive a payment of up to $ 300 per month for each child under 6 years of age and up to $ 250 per month for each child 6 years of age or older, ”the agency said in a statement on May 17.
The rest of the money must be claimed during the next taxable season.
Taxpayers may request a single payment under the CTC extension
Through the portals to be released by the IRS soon, potential beneficiaries can also require the agency to send them a single, one-time payment next year.
The IRS estimates that approximately 39 million households, covering 88% of children in the United States, would receive monthly payments with no further action required.
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