What is CHILDCTC?
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Deposits for the Child Tax Credit are labeled as CHILDCTC in your bank account.
If you receive your payment electronically, it will show up in your bank account labeled CHILDCTC. Transactions will contain the company name of “IRS TREAS 310” and text or entity description “CHILDCTC” .
The Child Tax Credit (CHILDCTC) in the American Rescue Plan provides the largest child tax credit ever and historic relief to the most working families ever.
Normally, tax relief for the year only comes the following year when you file your taxes, no matter how much you need it now. This year, you’ll start getting the money in July. As of July 15th, most families are automatically receiving monthly payments of $250 or $300 per child without having to take any action.
- For every child 6-17 years old, families will get $250 each month.
- For every child under 6 years old, families will get $300 each month.
- The 80% who get their refunds from the IRS through direct deposit will get these payments in their bank account on the 15th of every month until the end of 2021.
- People who don’t use direct deposit will receive their payment by mail around the same time.
When will I start receiving my monthly CHILDCTC payments?
People who receive payments by direct deposit get their payments on the 15th of every month. (In August the payment will go out on August 13th since the 15th falls on a weekend.) If you haven’t provided the IRS with your bank account information on a recent tax return, a check is sent to you around the same time to the address the IRS has for you.
How much will I receive in CHILDCTC payments?
Most families will receive the full amount: $3,600 for each child under age 6 and $3,000 for each child ages 6 to 17. To get money to families sooner, the IRS is sending families half of their 2021 Child Tax Credit (CHILDCTC) as monthly payments of $300 per child under age 6 and $250 per child between the ages of 6 and 17.
This amount may vary by income. These people qualify for the full Child Tax Credit (CHILDCTC):
- Married couples with income under $150,000
- Families with a single parent (also called Head of Household) with income under $112,500
- Everyone else with income under $75,000
These people will qualify for at least $2,000 of Child Tax Credit (CHILDCTC), which comes out to $166 per child each month:
- Married couples with income under $400,000
- Families with a single parent (also called Head of Household) with income under $200,000
- Everyone else with income under $200,000
Families with even higher incomes may receive smaller amounts or no credit at all.
Where will the IRS send my CHILDCTC payments?
The IRS sends your payments by direct deposit to the bank account they have on file. If they don’t have bank account information for you, a check will be mailed to you. If you receive your payment electronically, it will show up in your bank account labeled CHILDCTC.
What if I want to give the IRS new bank account information?
You can add or change your bank account information through the IRS’s Child Tax Credit Update Portal. Due to processing times, changes might not be reflected immediately on your next payment.
Can I get more of the CHILDCTC in a lump sum when I file my 2021 taxes instead of getting half of it in advance monthly payments?
Yes, you can opt out of monthly payments for any reason. To opt-out of the monthly payments, or unenroll, you can go to the IRS Child Tax Credit Update Portal. If you do choose not to receive any more monthly payments, you’ll get any remaining Child Tax Credit (CHILDCTC) as a lump sum next year when you file your tax return.
Will I keep getting the expanded credit amounts and the advance payments next year?
The American Rescue Plan enacted these historic changes to the Child Tax Credit (CHILDCTC) for 2021 only. That is why President Biden and many others strongly believe that we should extend the increased Child Tax Credit (CHILDCTC) for years and years to come. President Biden proposes that in his Build Back Better Agenda.