COLUMBUS, Ohio (WCMH)– As part of the $1.9 trillion American Rescue Plan Act signed into law in March, the IRS will begin making advanced payments of the Child Tax Credit this month.
“Starting on July 15, and then continuing every month, roughly on the 15th, through the end of the year, through December.”
Erik Ricci with Jackson Hewitt said the money is available to single parents making less than $75,000, and married parents earning less than $150,000, and will be split between this year and next — half this year in monthly payments, and half next year in one lump sum after you file your taxes.
Which means, according to Ricci, that next year’s refund is going to be different.
“If you have three kids and you used to get $6,000 in Child Tax Credit all at once with your Earned Income Tax Credit and your withholding, now, you’re getting that sent to you over the next five months,” said Ricci. “Your refund’s going to be smaller, and people need to be prepared for that.”
As for the amount, the law increases the credit to $3,600 for every child five years of age and under, and $3,000 for every child from 6 to 17 years old.
And the person who claimed the child as a dependent on his or her tax return this year is the one who gets the cash.
“Grandma, grandpa, brother, sister, a family relative — whoever claimed those children on their tax return, they will be receiving the payments,” said Ricci.
The only thing you need to do to receive that money is file your taxes. If you have not, there’s no penalty to file after the deadline, unless you owe the government money.
“If you filed this year, and all your information is correct as it was several months ago when you filed, you have no issues, it should be as smooth as can be,” said Ricci. “You’ll wake up the morning of the 15th, and there’ll be money in your bank account, hopefully.”
Ricci said filing your taxes provides the IRS with your mailing address and bank account information, so the agency knows how and where to send the money, which you will receive the same way you received this year’s tax return.
If you want to opt-out of the monthly payments, to receive it all in one lump sum next year, you must unenroll using the online portal (https://www.irs.gov/credits-deductions/child-tax-credit-update-portal) three days before the first Thursday of the next month.
CLICK HERE for a table, provided by the IRS, showing all the un-enrollment deadlines.