The American Rescue Plan signed by President Biden earlier this year expanded the federal Child Tax Credit program and delivered the first half of the expanded credit to families in the form of monthly payments. Under the Build Back Better Act, payments will be extended into 2022 and will make the refundability of the tax credit permanent. That means that families would be able to get the money regardless of whether or not they file taxes.
Currently, the Child Tax Credit payment amount is $3,600 for children under six years old and $3,000 for children aged six to 17. The first half of the extended credit began being delivered to families monthly in July and will continue until the December 15 payment. That works out to $300 per month for children under six and $250 for children 6-17. Payments phase out for people with higher incomes.
There were some families that were not already receiving the payments who also did not normally file a tax return because of the amount of money they make. There was a timeline of November 15 for those families to sign up for the one-time payment from the IRS. Families needed to go to the IRS website and the Child Tax Credit Update Portal.
According to the IRS, those families who signed up by November 15 will get the entire first half of the Child Tax Credit as a single payment. They will normally receive half of their total Child Tax Credit on December 15. This means a payment of up to $1,800 for each child, under 6, and up to $1,500 for each child, ages 6 to 17.
If you missed the deadline, you need to wait to file taxes in 2022 to claim the credit.
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