What to Know
- On Thursday, for the first time ever, tens of millions of families covering nearly 60 million children across America will begin receiving monthly Child Tax Credit payments -- including in families in the tri-state area.
- The credit is $3,600 annually for children under 6 and $3,000 for children ages 6 to 17. But half the credit, $1,800 to $1,500, will be distributed as an advance on 2021 taxes in six monthly payments
- This means eligible families will receive $300 monthly for each child under 6 and $250 per child older than that
Tens of millions of families covering nearly 60 million children across America start to receive monthly Child Tax Credit payments Thursday for the first time ever. But what that means for your family can depend on where you live.
President Joe Biden increased the size of the tax credit as part of his $1.9 trillion coronavirus relief package, as well as making it fully available to families without any tax obligations. The benefit is set to expire after a year, but Biden is pushing for it to be extended through 2025 and eventually made permanent.
The credit is $3,600 annually for children under age 6 and $3,000 for children ages 6 to 17. But half of the credit, $1,800 to $1,500, will be distributed as an advance on the 2021 taxes in six monthly payments. This means eligible families will receive $300 monthly for each child under 6 and $250 per child older than that.
The payments begin to phase out at incomes of $75,000 for individuals, $112,500 for heads of household and $150,000 for married couples.
Higher-income families with incomes of $200,000 for individuals and $400,000 for married couples can still receive the previous $2,000 credit.
If you filed taxes and the IRS already has your bank account information, the payments should be deposited directly into your account on the 15th of each month -- from July to December 2021.
But even if you haven't filed taxes in 2019 or 2020, or are not required to, you might still be eligible for the credit. The IRS created an online tool for parents to register their information electronically. Non-filers can register here.
Also, keep in mind, since the IRS is basing the payments on tax filings from 2019 and 2020, if you had a child in 2021, you can update this information at a different IRS online tool available here.
Here's what the Child Tax Credit means for families in the tri-state area:
What does this mean for New York families?
Over 1.9 million families in New York will get a check in July, according to the government.
This means that $802 million will go to New York families as part of the Child Tax Credit. Ultimately, according to the government, it is estimated that the money will help 3.2 million children in New York.
What does this mean for New Jersey families?
It is expected that more 940,000 families in New Jersey will get a check this month.
According to the White House, over $373 million will be distributed to New Jersey families to help 1.5 million children as part of the Child Tax Credit payments.
More on Child Tax Credit
What does this mean for Connecticut families?
About 350,000 families in Connecticut will get a check in July.
It is expected that over $137 million will be made in payments for Connecticut families to help 566,000 children.