The IRS is set to release the Advance Child Tax Credit payments on July 15th, 2021. These payments will be made in advance of filing taxes for the 2020 tax year and can help offset costs of raising children. It’s important that you know how these payments work and when they are expected to disburse so you can plan accordingly.
Advance Child Tax Credit
The new advance payments are part of President Joe Biden’s American Rescue Plan, which he signed in March. They supplement the child tax credit, which has been in place in some form since 1997. The number has risen over time, and with the new program beginning on July 15, it will rise again. For the time being, the increased sums and advance payments will be in effect until December 15, 2021.
How Much Are Families Receiving
Parents of children under the age of six can get up to $3,600 per kid, or $300 each month. Parents with children aged 6 to 17 are eligible for up to $3,000 per kid in advance payments, or $250 per month. For the time being, however, these enhanced sums and advance payments will be phased out by the end of 2021.
To be eligible for advance Child Tax Credit payments, you must have either:
- Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return
- A primary residence in the United States for more than half of the year (the 50 states and the District of Columbia) or a joint return with a spouse who has a primary residence in the United States for more than half of the year
- A kid who will be under the age of 18 by the end of 2021 and has a valid Social Security number
- Made less than a certain amount of income.
Additional Assistance For Struggling Families
Though the Child Tax Credit funds may suffice in terms of expenses, many families are still left with unattended tax debt at the fault of the ongoing pandemic. The tax credit will not be enough to satisfy any tax debts individuals and families may have with the IRS. But there is a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
See if you qualify for the Fresh Start Program today!
Resolve your tax debt before the IRS surprises you with late fees and penalties!
- Answer a few questions
- Qualify and be presented with a resolution – click here
- Enroll in Fresh Start
You can click here to be connected with a verified partner of IRS Fresh Start Initiative