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Everything to Know about the IRS Tax Change

The Internal Revenue Service (IRS) and the U.S. Department of the Treasury announced that the first monthly payment of the new Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15. 

The expanded and newly advanceable CTC will distribute to 39 million households, which covers 88% of children in the United States. Eligible families will receive up to $300 per month for children under the age of 6, or $250 per month for each child ages 6-17. These payments will begin “without any further action required”, much like the stimulus checks sent out in 2020 and 2021. 

The payments will be made regularly from July through December to eligible taxpayers who have a main home in the United States for more than half the year. 

Families can opt-out of receiving the monthly payments through an IRS portal. Families who choose this route either prefer to get their tax return in full as a large lump sum of money or don’t need the monthly payments immediately. 

Those who opt-out will not receive the monthly amounts, but will still receive the full tax refund they are eligible for when they file their 2021 taxes in 2022.

To find out more information about how to access the Child Tax Credit, click here.