money IRS sends out second-to-last round of monthly Child Tax Credit payments
The Internal Revenue Services is sending out the second-to-last monthly Child Tax Credit (CTC) payment beginning Monday, distributing about $15 billion to approximately 36 million families, the agency said last week.
Overall, the government has delivered roughly $77 billion to families across the country since the July payments began.
“The Child Tax Credit is giving families across America the flexibility to pay for household essentials, school supplies, and other childcare needs,” said Secretary of the Treasury Janet Yellen in a statement Monday. “This tax relief is making a meaningful difference in the lives of millions of children, and it’s crucial for Congress to extend it by passing President Biden’s Build Back Better agenda so families can continue to benefit.”
Low-income families who have not yet gotten payments and have not filed a tax return can still get half of their credit amount in a lump sum on December 15, the last scheduled monthly payment, but only if they sign up by Monday, November 15 on the IRS website here. The portal is available in English and Spanish.
Under the American Rescue Plan, the credit amount increased to $3,600 per child under 6 and $3,000 per child 6 to 17. The credit also was made fully refundable, which means families still get the full credit even if that amount exceeds what they owe in taxes.
The IRS is also distributing half of the credit in advance, sending out monthly payments that started in July. Families that qualify for the credit can receive up to $300 per month for each child under 6 and up to $250 per month for each child 6 to 17.
Families will get the other half of the credit when they file their taxes next year.
Those families who haven't received payments can get a lump sum of up to $1,800 for children under 6 and up to $1,500 for children 6 to 17 in December. If they don't register by the November 15 deadline, those families still can get the full credit when they file their 2021 federal taxes next year.
Families already getting monthly payments can use the Child Tax Credit update portal (CTC-UP) on the IRS website to:
Switch from getting a paper check to direct deposit;
Change the account where their payment is deposited;
Update their mailing address;
Stop monthly payments; and
Update changes in their income that could affect their monthly payments.
Updates must be made by November 29 to be reflected in the December monthly payment.
The expanded tax credit is set to expire after this year, but Democratic lawmakers want to include an extension of the credit through at least 2022 in their Build Back Better plan that's still being negotiated.
Janna is an editor for Yahoo Money and Cashay. Follow her on Twitter @JannaHerron.
