INDIANAPOLIS — Thousands of families throughout Indiana will see more money in their bank account starting on July 15.
The Internal Revenue Service and the U.S. Department of the Treasury announced today that the first monthly payment of the expanded Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15.
The credit impacts about 39 million households — covering 88% of children in the country — are slated to begin receiving monthly payments without any further action required.
Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above, according to the IRS, and the government will make the payments on the 15th of each month unless the 15th falls on a weekend or holiday
The American Rescue Plan increased the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17.
The goal of the American Rescue Plan is to help more than five million children in poverty this year.
Some Indiana families will not receive the payment.
The payments are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
Indiana families will receive the monthly CTC payments through direct deposit, paper check, or debit cards.
“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,” read a statement from the IRS.
Additional information on the Child Tax Credit can be found here IRS.gov/childtaxcredit2021.