Breaking News
More () »

Monthly child tax credit payments begin July 15. Here's what you need to know

Nearly 88% of children are set to receive the benefits without their parents needing to take any additional action.

To help families out during the pandemic, the government temporarily increased the 2021 child tax credit — the taxes you will file next season.

Instead of $2,000 per qualifying child, families can get up to $3,000 per child for children between the ages of 6 and 17 and up to $3,600 for those under 6 years old.

Like the stimulus payments, the credits will phase out for those making over a certain income. For married people filing jointly, the income limit is $150,000. For single filers, it's $75,000.

But you don't have to wait until next tax season to see that money. 

The IRS says families can get up to 50 percent in advance via recurring monthly payments beginning in July.

RELATED: Child tax credit update: Families to receive monthly payments starting July 15

Tax preparer Daventry Burrough said this advance is for families who need money sooner than later.

"If you are in that 'need it now' bucket, then absolutely, get those monthly installments and apply them to where they need to go. That's why they're there," Burroughs said.

If families are not in need of immediate assistance, they can defer the monthly payments and instead take a lump sum tax credit next filing season. The IRS said more details will be released soon. 

Burrough suggests contacting a tax professional to discuss which option is best for your family. The IRS has more information about the child tax credit on its website

Paid Advertisement

Before You Leave, Check This Out