/IRS to Begin New $3,000 Child Tax Credit in July

IRS to Begin New $3,000 Child Tax Credit in July

IRS Commissioner Charles Rettigis says they are set to begin rolling out $3,000 child tax payments to American families this July. The new and significantly expanded child tax credit was included in President Biden’s $1.9 trillion American Rescue Plan which he signed into effect last month. Under the law, families will receive a $3,000 annual benefit per child ages 6 to 17 and $3,600 per child under the age of 6 for the 2021 tax year.

On Tuesday, when Sen. Sherrod Brown, a Democrat from Ohio and ranking member of the Senate Banking Committee, asked Rettig if the IRS would be ready to start monthly child tax credit payments in July, he had a simple answer.

“We are,” Rettig said. “If we end up not being on track for some unforeseen situation we will advise you and the committee.”

The full credit is available to individuals who have children and adjusted gross income of less than $75,000, or $150,000 for a married couple filing jointly. The benefit will begin to phase out for taxpayers who make more money, and end for individuals earning $95,000 and married couples earning $170,000 filing jointly.

To see how much you could expect to receive, personal finance website Grow created a calculator that factors in your filing status, annual income and the number of dependents you have.

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