The first monthly payment of the expanded and newly advanceable Child Tax Credit from the American Rescue Plan will be made on July 15.
Roughly 39 million households are slated to begin receiving monthly payments. Earlier, the IRS had predicted that only periodic payments might be possible, though it had hoped to start them on July 1.
CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older.
The American Rescue Plan increased the maximum CTC in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children between 6 and 17.
Most taxpayers will not be required to take any action to receive their payments, but the Treasury and the IRS will continue outreach efforts to make more families aware of their eligibility.
IRS Commissioner Charles Rettig recently indicated that the IRS was working to implement a new program for an expanded CTC by July 1 but left open the possibility of delays.
More information for taxpayers on how they can access the CTC will be available soon on at IRS.gov/childtaxcredit2021.
The American Rescue Plan Act expands the CTC in hopes of reducing child poverty by supplementing the earnings of the families who receive the tax credit. The law increased the amount from $2,000 to $3,600 for children under the age of six, and $3,000 for other children under the age of 18 through the rest of the year.