As part of the administration’s relief efforts to combat Covid19 effect on American families, the administration has provisioned a Child Tax Credit for 2021 that can be received in advance. Nearly 60 million children will receive funds either by direct deposit or by check. How much each household will receive depends on income and the number of children.

For 2021, the Child Tax Credit will be a maximum of $3,600. For every child under the age of 6, families will get up to $3,600 under the expansion, or $300 per month. For every child ages 6-17, the amount is $3,000, or $250 per month. This is a significant increase from past years when the credit was $2,000 per child, ages 0-16.

The amount starts phasing out for families with higher incomes, above $150,000 for married couples filing jointly, or $112,500 for single parents who file as head of household.

Payments will be distributed on monthly basis to reach half of the eligible amount. The rest can be claimed on the tax return to be filed for 2021 as is the normal practice prior to the pandemic.

If you filed taxes, you would automatically get the payments. If you don’t file, you will need to register online click here. If you don’t file taxes but received stimulus payments, you will get the Child Tax Credit without registering online.

The IRS is giving families a choice not to receive the payments and keep the entire amount or part of it still be filed with the tax return and therefore claim the entire amount at one time vs monthly payments. This election can be done online. Manage Your Payments