President Joe Biden signed the American Rescue Act back in March. In July, parents across the country started receiving advance payments on their child tax credit. Each month, parents received either $250 or $300 per child depending on the age of each kid. This month, some parents will receive double that amount. However, most will continue to see the same amount every month until the end of the year.
Parents who didn’t sign up to get the payments until October will see bigger checks, according to The Sun. This will help to catch them up with the larger group of parents who started getting checks this summer. Those who are getting their first advance payment on their child tax credit will receive $600 for each child under 6. Additionally, they’ll get $500 for children between the ages of 6 and 17.
Parents who see bigger checks this month will also see bigger checks in November and December. This is because these payments aren’t just monthly stipends. They equate to half of the total child tax credit that parents generally receive in the spring when they file their taxes. All told, the advance payments equal $1,500 per child aged 6-17 and $1,800 per child under 6. Parents will claim the rest of the credit when they file taxes in 2022.
Getting Child Tax Credit Payments
Families who are already receiving child tax credit payments will continue to do so. Their regular payment of either $250 or $300 will land as planned for the rest of the year. However, families who haven’t received payments yet can still sign up. It is important to note that families who filed taxes should have been enrolled in payments automatically.
Those who did not file taxes earlier this year will have to sign up through the IRS website. Many of those are low-income families. As a result, they’re the ones who need these child tax credit payments the most. The IRS has provided a dedicated online tool to help those people register for the payments. However, The Sun notes that the tool will only be available until October 15th. So, those who have not signed up should act now to get their payments.
Opting Out of Payments
Some families do not want or need the monthly child tax credit payments. Instead, they would rather receive it all in one lump sum when they file taxes. This is still possible. All those families need to do is head over to the IRS website and use the account management tool to opt-out of future payments. However, they must do that before the 2nd of the month. As a result, it is too late to opt-out of this month’s payment. They can still opt out of the next two, though.
After going to the IRS website, parents will have to sign up for a secure account. This takes about 10-15 minutes. Then, they’ll be able to manage their child tax credit payments. It is important to note that if parents file their taxes jointly, both parties have to sign up and opt-out. If only one parent opts out of payments, they will still receive half of the scheduled amount.