Child Tax Credit: IRS Sends Out Letter That Could Signal The Arrival Of The Monthly Advance Benefits

child tax credit
child tax credit

Families with children are eagerly awaiting the start of the child tax credit benefits that start less than a month away.  Slated to start on July 15, 2021. The benefits will reach close to 36 million households or roughly 92% of children in the US, according to the IRS.

And the child tax credit benefits are being preceded by a letter from the IRS announcing the start of the monthly payments that are scheduled to continue till December 15, 2021.

New rules have led to a massive increase in the amount that a family will get for each child. While it was $2,000 earlier, the Biden administration has ensured that children below 6 should contribute as much as $3,600 while it is a little lower at $3,000 for children between 6 and 17.

Child Tax Credit To Be Paid In Two  Parts

Instead of sending out the payment all at once, the administration has decided to do monthly installments of the child tax credits.

So it comes to $300 per month per child for families who qualify for the $3,600. For children aged between 6 and 17, the monthly amount comes to $250. This advance part payment was deemed necessary due to the hardship that families are enduring due to the pandemic.

While half the payment will be paid in monthly installments, the rest will be adjusted against tax returns for 2021 to be filed next year.

It is advisable to hold on to the letter as it an official document. But not getting one doesn’t mean that you haven’t qualified for the child tax credit benefits. It could for other reasons. For instance, the IRS might not have your current mailing address, or it doesn’t have sufficient information to conclude if you qualify for the CTC benefit.

To ensure that you get the benefits on time, ensure that you have submitted all the relevant details with the IRS. Use the non-filer sign-up tool. If you haven’t filed the 2020 returns, do so at the earliest. Update your postal address if you have recently moved. And do a double check on your eligibility for the benefits.