ELMIRA, N.Y. — The Biden Administration’s monthly child tax credit payments will start hitting bank accounts July 15.
According to the IRS, those who are eligible will be able to get up to half of the total credit in advance monthly payments and claim the rest while filing their 2021 taxes.
Monthly child tax credit payments will go out for approximately 65 million kids.
The child tax credit was established as a part of the American Rescue Plan signed into law in March.
Families will get monthly payments of up to $300 for each child 6 years old and under and up to $250 for each child 6 to 18 years old.
“The thing that people do have to worry about or think about is if their 2020 income was less than what it may be in 2021. They may have to pay some of this money back,” said Craig Petrella, a certified public accountant.
The plan raises the maximum payments a family can receive per child from $2,000 to $3,600.
The IRS has started sending letters to more than 36 million eligible American families.
The child tax credits will be sent to eligible households either by direct deposit or paper check; however, payments will go out via debit card in the future.