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OLGT 2021-59: COVID-19: Monthly Child Tax Credit Payments Beginning July 15th

Date: 
07/15/2021
Author: 
DTA
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As part of The American Rescue Plan Act, families with children will begin receiving an expanded Child Tax Credit for 2021. This expansion includes the increase of the maximum annual Child Tax Credit from $2,000 a year per child to $3,000 a year per child for dependents between the ages of 6 and 17, and $3,600 a year per child for dependents 5 years old and younger.

As part of The American Rescue Plan Act, for the first time, one half of a family’s total Child Tax Credit will be paid out in monthly installments. Beginning July 15, the IRS will begin providing payments to families eligible for the credit and will continue to deliver these monthly payments on the 15th of every month through December 2021. Families may also opt not to get the monthly installments, and instead receive as they normally would, as a full tax return.

Many Low-income families who have no earned income or earned too little to have filed a 2020 or 2019 tax return can still qualify to receive monthly child tax credit payments by registering with the IRS as a nonfiler. Please see https://www.findyourfunds.org/ for complete details.

All Child Tax Credit income is "income excluded by law" and is considered non-countable for SNAP, TAFDC, and EAEDC.

These credits are considered noncountable assets for twelve months from the date of receipt. Any portion of the refund remaining after 12 months is considered a countable asset.

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