July 15, 2021
Candace J. Dixon
$15 billion dollars was paid to families that include 60 million children in the first monthly payment of the expanded Child Tax Credit, The U.S. Department of the Treasury and the Internal Revenue Service announced today. Millions of American families have started receiving their monthly Child Tax Credit payments as direct deposits begin posting in bank accounts and checks arrive in mailboxes. People receiving payments by paper check should take into consideration the time it takes to receive it by mail. This first batch of advance monthly payments reached 35 million families today across the country, 86% by direct deposit. Payments will continue monthly on Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
“For the first time in our nation's history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor’s visits, school supplies, and groceries,” said Secretary Janet L. Yellen. “This major middle-class tax relief and step in reducing child poverty is a remarkable economic victory for America – and also a moral one.”
Experts project the American Rescue Plan will take 5 million children out of poverty this year, citing the expanded Child Tax Credit as the largest single contributor to the reduction. The American Rescue Plan expanded the Child Tax Credit for 2021 by increasing the amount of it and making it fully refundable, with the IRS sending out monthly advance payments this year to get the money to families sooner. Under the American Rescue Plan, payments are up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 through 17. People who receive a payment this month will receive a payment every month for the rest of 2021 unless they unenroll.
Since President Biden signed the American Rescue Plan in March, The White House has been in a cross-agency collaboration with the Department of Treasury and the IRS to ensure that the expanded Child Tax Credit reaches the families who need it the most. The IRS launched a Non-filer Sign-up Tool so that people who don't normally file tax returns, including lower income families, can register and receive this credit. The three agencies have worked with advocacy groups and public figures to direct people to this tool through awareness efforts such as the weekend IRS events held in 12 cities where data had showed large numbers of children living in households not normally filing tax returns.
The Department of Treasury estimates that families including 26 million children will receive the full credit, and that they would have received less under the prior rules because their incomes were too low. They also estimate that families including 720,000 children will receive payments starting this month because they had used an online IRS registration tool last year to sign up for Economic Income Payments. Those families would not be receiving this first set of payments otherwise, because they were automatically included in this round with the information they provided when they signed up for Economic Impact Payments (stimulus checks). Tax returns processed by June 28 are reflected in these payments, including people who successfully registered for Economic Impact Payments in 2020 using the IRS Non-Filers tool rather than filing tax returns, or who used the Non-filer Sign-up Tool for Advance Child Tax Credit to sign up.
Read our latest forum post about the Child Tax Credit here: The Historic Child Tax Credit of 2021 to see why people may choose to unenroll.
People who didn't sign-up in time to receive the advance Child Tax Credit this month should still use the IRS tools to register now to help determine their eligibility for the advance Child Tax Credit as well as Economic Impact Payments and other credits they may be eligible to receive. Eligible families will receive increased monthly payments after they register to make up for any part of the credit they missed.
Resources: 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions
Advance Child Tax Credit 2021 gives up-to-date information about the credit and the payments.