Thousands of American families are waiting for their Monthly Child Tax Credit Payments under the American Rescue Plan stimulus package approved in March 2021. While the qualifying families are eligible to get $3600 per eligible child in 2021, half the amount will be received monthly while the rest during filing 2021 Tax Returns.
IRS announced that around 65 million US children are eligible for the CTC payment. To simplify the understanding and analysis of eligibility, it also launched a set of online tools. Knowing the basic eligibility criteria can help an application to a great extent.
Basic Eligibility Criteria For Child Tax Credit Payments
To meet the needs of the CTC, here are the eligibility terms:
The eligible child should be below 18 years at the end of 2021.
Should have stayed in the US for half of 2021.
Income eligibility criteria must be fulfilled.
A tax return for 2019 or 2020 should be filed with a CTC claim.
OR
Information submitted using IRS Non-filer tool in 2021.
OR
Given the information in 2020 to receive the Economic Impact Payment with the Non-Filers.
The CTC amount will be based on your income reported in the return file in 2020. So, it is important to consider any major changes that might have occurred to get the most precise estimate for the next return.
IRS offers the eligibility assistant tool to help you gain insight to either stay in or opt-out from the CTC based on your earnings.
Amount You Can Get
An eligible family can claim up to $3600 per qualifying child under age 6 and $3000 for a child between 6-17 years. Half of the amount would be credited monthly starting from July 15. So, for every child below age 6, the amount credited will be $300 monthly, and for 6-17 will be $250 monthly.
The amount might vary depending on modified adjusted gross income from the last tax return filed. For ease, complete detailed information about the payment management and tools is available on the IRS website.
Method Of Receipt Of CTC
IRS uses quite a simple method to credit the CTC. You will receive the payment either through direct deposit or mailed check. The details will be extracted from what has been updated on the online portal.
Get your details updated today on the IRS portal to receive all your monthly CTC as direct deposit. The best part is, you can unenroll anytime without hassle.
