New monthly payments will be given out as part of the expanded child credit of $3,600 per child for families, essentially making a “fourth” stimulus, which is monthly instead of all at once. Under Biden’s new American Rescue Plan Act from 2021, the child tax credit was increased to $3,600 for each child under 6 and $3,000 for children aged 6-17. Previously, this money only applied to kids under 17.
Taxpayers will get half of this credit in the form of monthly payments. This means that for July through December, tax payers will get $250 to $300 per month for each child. Taxpayers will get the remaining half at the end of the year, on their 2021 returns.
Taxpayers making less than $75,000 per year, or $150,000 for couples can get the full credit. The credit will be lowered by $50 per $1,000 of income higher than those amounts.
It is important that you ensure your filing information is correct with the IRS, because using outdated information could trigger an over-payment, which would mean having to back the excess funds at tax time.