President Joe Biden intends to keep the money coming this summer for parents who qualify for a child tax credit. Monthly payments between $250 and $300 per child depending on a child’s age, should begin arriving next week.
In order to qualify, parents should have filed a tax return for 2019 and 2020. For qualifying children ages 5 and younger, up to $1800 will come in six $300 monthly payments this year.
For children between the ages of 6 and 17, $1500 will come in installments of $250 each month for six months this year. (The IRS bases a child’s eligibility on his or her age on December 31, 2021 so therefore a 5 year old child turning 6 in 2021, would qualify for the maximum of $250 per month.)
Dependents age 18 qualify for a one time $500 check.
The balance or remainder of the payment for children ages 17 and under will come for tax-filers with their 2021 tax return refunds.
More than 90% of families in the US will qualify for the child tax credit payments that begin next week.
A family’s adjusted grow income and the ages of its dependents determine who is eligible. Single earners making less than $240,000 will qualify for some form of credit along with couples making less than $440,000 per year. (Families at or above those amounts phase out of the tax credit entirely.)
Meanwhile, the full $3000 or $3600 (depending on the age of the child) credits are available for married joint earning families making up to $150,000 per year. For single taxpayer parents, the adjusted gross income must be $75,000 or less.
These amounts are per child. As such, a family with five children ages, 1, 3, 5, 8 and 10–earning $149,000 per year–would qualify for $16,800 in credits — more than 10% of their gross income.