Although a fourth stimulus check is unlikely to pass, a different relief initiative will soon send monthly payments to families. The first round of child tax credit payments promised by President Biden's American Rescue Place is going out July 15, said the IRS.
According to the IRS, about 39 million households (including 88% of children in the United States) can expect to see the monthly payments.
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Eligible households will start receiving the monthly payments via direct deposit, paper check or debit card. If you made up to $75,000 as a single filer in 2020, or up to $150,000 for joint filers, then you should receive $300 for each child under age 6, and up to $250 for each child ages 6 through 17.
The payments, which are technically an advance on child tax credits, will last until December. As long as parents filed their 2020 tax returns, they don't need to apply for the monthly check.
But if parents and legal guardians need to communicate with the IRS about changes, disputes and other issues that might affect their child-tax-credit payments, they can use an online portal expected to launch on July 1.
Child tax credit eligibility
To qualify for monthly child tax credit payments, the eligible children must have Social Security numbers. The children must also reside with the parents or guardians claiming them as dependents for at least six months of the year.
Again, if you made up to $75,000 as a single filer in 2020, or up to $150,000 as a joint filer, you're eligible for the full child tax credit payment amounts. The amount of the child tax credits phases out for single filers with incomes of up to $95,000 and joint filers up to $170,000, according to CNBC.
Wondering how much you'll qualify for based on your income and number of dependents? This child-tax-credit calculator can tell you how much money you should expect to get each month between July and December.
