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Expanded Child Tax Credit

Indiana Information Bulletin #119 RBSK PartnersPayment for Refundable Child Tax Credit Starts July 15

The first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15.

Roughly 39 million households - nearly 90 percent of children in the United States - are slated to begin receiving monthly payments without any further action required.


When Payments will be Made

The increased CTC advance payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday.

Advance payments will be paid July 15, 2021 through December 15, 2021. Families who receive the credit by direct deposit can plan their budgets around receipt of the benefit. 

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Who is Eligible?

The American Rescue Plan expanded this credit. The credit is fully refundable for 2021 and makes 17-year-olds eligible as qualifying children.

The maximum for each child ages 6 to 17 is now $3,000, and $3,600 for each child under age 6 for couples who make $150,000 or less and single parents who make $112,500 or less.

The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half.

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What is the Advance Credit/Payment Amount?

Advance payments for eligible families will receive up to 50% of the CTC in monthly payments from July through December 2021.

Advance payments will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.

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How Will You Receive Credits/Payments?

Households covering more than 65 million children will receive the monthly CTC payments through direct deposit, paper check, or debit cards, and IRS and Treasury are committed to maximizing the use of direct deposit to ensure fast and secure delivery.

While most taxpayers will not be required to take any action to receive their payments, Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility.

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Next Steps

  1. In June, the IRS will send you letter 6417. This letter will inform you of the amount of your estimated Child Tax Credit monthly payments. This letter will also indicate where you can find additional information about advance Child Tax Credit payments.
  2. Advance Child Tax Credit payments are not income and will not be reported as income on your 2021 tax return. Advance Child Tax Credit payments are advance payments of your tax year 2021 Child Tax Credit. However, the total amount of advance Child Tax Credit payments that you receive during 2021 is based on the IRS's estimate of your 2021 Child Tax Credit. If the total is greater than the Child Tax Credit amount that you are wallowed to claim on your 2021 tax return, you may have to repay the excess amount on your 2021 tax return during the 2022 tax filing season. For this reason, you may wish to unenroll from receiving advance Child Tax Credit payments. You will be able to unenroll through the Child Tax Credit Update Portal (CTC UP), which will become available in June. 
  3. In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

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Questions and answers about the advance Child Tax Credit payments are available here from the IRS. You can also contact your trusted advisor at RBSK Partners for additional information. 


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