Most Americans who were eligible have received the third stimulus check by now, but unfortunately, those funds may not have been enough to offset the financial hardships brought on by the pandemic. There's a chance, however, that you may be in line for more money soon: The IRS says you could get money in July, if you meet a certain requirement. Read on to find out if you're eligible for this future payment, and for more news you need to know, If You Get an Email From the IRS With These 3 Words, Don't Click on It.
If you have children, you could get money from the IRS in July.
The IRS is going to start sending out a new child tax credit in July, IRS Commissioner Charles Rettig confirmed during an April 13 hearing with the Senate Finance Committee. This tax credit makes parents eligible for more money from the IRS under the American Rescue Plan, which was signed into law by President Joe Biden in March. "We fully expect to launch in July," Rettig said at the hearing. And for more on future payments, Your Chance of Getting a Fourth Stimulus Check May Depend on This One Thing.
These will be monthly payments through an IRS portal.
Rettig also confirmed that the IRS plans to launch this tax credit "with payments going out on a monthly basis." According to Rettig, the agency plans to debut an online portal on July 1, which will allow it to send the child tax credit to families monthly instead of as a lump sum at tax time. Families will also be able to inform the IRS of any changes to their households in 2021, or to opt out of these monthly payments.
"It is going to be as user-friendly as possible," Rettig said. People without internet access can use paper forms or visit an IRS office to work out the credit, he added. And for more financial guidance, If You're Waiting on a Stimulus Check, Read This Before Filing Your Taxes.
Eligible parents will receive at least $3,000.
If you have children and make less than $75,000 (or $150,000 for a married couple filing together), you are eligible for the full child tax credit—worth at least $3,000. According to CNBC, families will receive a $3,000 annual credit per child aged 6 to 17 and a $3,600 per child credit for children under the age of 6 in 2021. This breaks up into $250 or $300 monthly payments from July to December, and the remaining half of the credit can be claimed when filing the 2021 income tax return in 2022.
Individuals making more than $95,000 but less than $200,000 annually ($170,000 but less than $400,000 for joint-filers) are still eligible for the normal child tax credit, which is $2,000 per child under the age of 17. For those who make between $75,000 to $95,000 ($150,000 to $170,000 when filing jointly), the extra child credit will still be given, but in smaller amounts that are phased out as income rises. And for more useful information delivered straight to your inbox, sign up for our daily newsletter.
You must file a 2020 tax return to get this credit.
Eligible families with children must file a 2020 tax return to receive the credit, Rettig said. If a family doesn't file a 2020 return, the IRS will not have enough information it needs—like how many children there are and where to send the credit—to deliver the funds. The IRS has extended the tax filing deadline this year from April 15 to May 17, giving you even more time to file. And for more tax advice, This Common Mistake Could Delay Your Tax Refund This Year, IRS Says.