The American Rescue Plan Act (ARPA) of 2021, signed into law on March 11, 2021, calls for six child tax credits to be issued in 2021. The Internal Revenue Service (IRS) will begin issuing payments through direct deposit, paper check, or debit cards on the following days:
The American Rescue Plan Act increased the existing maximum child tax credit to $3,600 for children under the age of 6 and $3,000 per kid for children between the ages of 6 and 17. It also set up a framework to prepay a portion of those funds over the final six months of 2021 through the IRS. Eligible families will receive monthly payments of up to $300 for each child under the age of 6 and up to $250 per month for each child between the ages of 6 and 17.
The amount of the payments will be phased out if the taxpayer has adjusted gross income over $75,000 for individuals and over $112,500 for heads of household, or over $150,000 for married couples filing joint returns.
The IRS will be using 2020 taxpayer information that is already on file to issue the payments. Most eligible taxpayers will not need to take any action now other than file their 2020 tax return if they have not already done so. If you need to update your direct deposit with the IRS, stop into your American 1 Credit Union branch today and ask for a direct deposit letter!
Sources: David Curtis CUCE, Director of Compliance Services, NWCUA and WGN9 Chicago.