When will child tax credit payments start? Checks set to roll out in July, IRS says

0

Jessica Menton, USA TODAY
Published 9:50 a.m. ET May 3, 2021

Because of the coronavirus pandemic, 2020 may be a tax year like no other. Here are answers to some of your top questions.

USA TODAY

American families are set to receive a more generous child tax credit for 2021.

Starting in July, the IRS will begin sending out monthly payments of $250 or $300 through December to low- and moderate-income families who qualify, depending on the child’s age, the agency says. 

The American Rescue Plan, which was passed in March, boosted the child tax credit, with the largest increases going to the lowest-income families with children.

President Biden wants to extend the program through 2025 using another initiative dubbed the American Families Plan, which is part of his “Build Back Better” proposal.

Will there be a fourth stimulus check?: Biden’s first address to Congress may offer clues for Americans

Death and taxes: Americans grapple with filing the final tax return for deceased relatives in a pandemic year

FacebookTwitterGoogle+LinkedInEnergy, travel and other industries offset lack of individual income tax… Fullscreen

Post to Facebook

Posted!

A link has been posted to your Facebook feed.

When will child tax credit payments start? Checks set to roll out in July, IRS says

Most Americans pay federal and state income taxes. For most states, individual income taxes make up over 15% of annual tax revenue. To identify the states with no income tax, 24/7 Wall St. reviewed the tax code in each state using the latest tax data compiled by tax policy research organization Tax Foundation. alfexe / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

1. Alaska• 2018 personal income per capita: $59,420 (10th highest)
• 2018 total state tax collections per capita: $2,226 (8th lowest)
• 2018 state debt per capita: $7,986 (4th highest)
• Largest source of state+local tax revenue: Property tax (51.8% of total) Chilkoot / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

2. Florida• 2018 personal income per capita: $50,070 (23rd lowest)
• 2018 total state tax collections per capita: $2,158 (6th lowest)
• 2018 state debt per capita: $1,296 (5th lowest)
• Largest source of state+local tax revenue: Property tax (36.4% of total) Sean Pavone / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

3. Nevada• 2018 personal income per capita: $49,176 (22nd lowest)
• 2018 total state tax collections per capita: $3,018 (23rd highest)
• 2018 state debt per capita: $1,132 (3rd lowest)
• Largest source of state+local tax revenue: Sales tax (41.1% of total) f11photo / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

4. South Dakota• 2018 personal income per capita: $52,216 (22nd highest)
• 2018 total state tax collections per capita: $2,174 (7th lowest)
• 2018 state debt per capita: $4,239 (15th highest)
• Largest source of state+local tax revenue: Sales tax (38.7% of total) EunikaSopotnicka / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

5. Texas• 2018 personal income per capita: $50,355 (25th lowest)
• 2018 total state tax collections per capita: $2,102 (2nd lowest)
• 2018 state debt per capita: $1,795 (8th lowest)
• Largest source of state+local tax revenue: Property tax (45% of total) Sean Pavone / Getty ImagesFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

6. Washington• 2018 personal income per capita: $62,026 (7th highest)
• 2018 total state tax collections per capita: $3,527 (12th highest)
• 2018 state debt per capita: $4,502 (14th highest)
• Largest source of state+local tax revenue: Sales tax (46.4% of total) aiisha5 / iStockFullscreen

When will child tax credit payments start? Checks set to roll out in July, IRS says

7. Wyoming• 2018 personal income per capita: $60,361 (9th highest)
• 2018 total state tax collections per capita: $3,180 (19th highest)
• 2018 state debt per capita: $1,441 (6th lowest)
• Largest source of state+local tax revenue: Property tax (36.7% of total) JohnnyGreig / Getty ImagesFullscreen

Replay

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    1 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    2 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    3 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    4 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    5 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    6 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    7 of 8

    When will child tax credit payments start? Checks set to roll out in July, IRS says

    8 of 8

AutoplayShow ThumbnailsShow CaptionsLast SlideNext Slide

What’s changed? 

The American Rescue Plan included a temporary increase in the child tax credit for 2021 and is making advanced payments to qualifying families. Previously, the amount was $2,000 and families with little or no tax obligations weren’t eligible for the program.

Under the latest legislation, the credit increases to $3,000 per child, or $3,600 a child under 6. It also allows 17-year-old children to qualify for the first time. 

The credit is paid out in monthly installments.  Struggling families could see monthly checks of $250 or $300 per child starting from July to December.

Who qualifies?

The IRS will use prior-year tax returns to determine who qualifies for the higher credit. If a return for 2020 hasn’t been filed yet, the agency rely on 2019.

The credit will begin to phase out for those earning more than $75,000 a year, or $150,000 for those married and filing jointly. 

Families who aren’t eligible for the higher child credit may still be able to claim $2,000 credit per child.

Will it be extended?

The Biden administration wants to extend the program through 2025 via his American Families Plan that was unveiled last week.

Although Biden is calling for the child tax credit to be permanently fully refundable, it fell short of House Democrats’ calls to make the credit permanent.

Source

Leave A Reply

Your email address will not be published.