The fifth Child Tax Credit payment will be showing up in the bank accounts of millions of American families next week.
The payment is set to be sent by direct deposit on Monday, with paper checks sent on that day as well.
Those eligible for the expanded 2021 child tax credit will see between $250 and $300 a month for each child in the household.
According to the IRS, some 39 million families will be getting a check from the tax credit that was increased under the American Rescue Plan Act signed into law in March.
Here is what you need to know about the tax credit:
Who gets the payments?
Who is eligible for the child tax credit? You can find out if you are eligible by going to the IRS website and answering a few questions.
Generally, for the 2021 tax year, a taxpayer filing as single will be eligible for the full credit if their adjusted gross income is at or below $75,000. For a married couple filing jointly, the income level is at or below $150,000. If you file as a head of household, the income limit is $112,000.
How much will the checks be?
Most parents will get $300 a month for every child in the household who is younger than age 6. For parents of children ages 6 to 17, look for around $250 a month.
The payments will begin to phase out for singles earning more than $75,000 and married couples earning more than $150,000. The credit is reduced by $50 for every $1,000 over the income thresholds.
How will you get the payments?
The child tax credit has been sent in monthly installments since July. Those payments will end with December’s payment.
You will get the rest of the credit next year when you file your income tax return.
The payments will be sent by direct deposit if the IRS has your bank information on file or by a paper check if they do not.
You can go to the Child Tax Credit Update Portal to view how your check will arrive, in addition to adding or updating direct deposit information.
What dates will the checks be coming on?
The remaining two monthly payments will come on Nov. 15 and Dec. 15.
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