U.S. Treasury Sends Out First Child Tax Credit Payment

U.S. Treasury Sends Out First Child Tax Credit Payment

The U.S. Treasury has paid out the first monthly installment of the Child Tax Credit, for a total of $15 billion. This was part of the latest $1.9 trillion COVID-19 legislation known as the American Rescue Plan.

The July payments went to families with nearly 60 million eligible children, the Treasury said. Eligible families received an initial monthly payment of up to $300 for each child under 6-years-old and up to $250 for each child age 6-17.

The American Rescue Plan expanded the Child Tax Credit for 2021. The credit increased from $2,000 per child in 2020 to $3,600 for each child under age 6. For each child ages 6 to 16, it’s increased from $2,000 to $3,000. It also makes 17-year-olds eligible for the $3,000 credit. To get money to families sooner, the IRS is sending out half of the 2021 Child Tax Credit this year in monthly payments. These payment are already showing up in account today.

The IRS has also launched an online tool for some families that need to register for the monthly Child Tax Credit. This should be used by people who are not required to file a 2020 tax return, didn’t file one and don’t plan to.

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