The full enhanced credit will be available for heads of households earning $112,500 and joint filers making up to $150,000 a year, after which it begins to phase out.
For many families, the credit then plateaus at $2,000 per child and starts to phase out for single parents earning more than $200,000 or for married couples with incomes above $400,000.
Parents who aren’t citizens can receive the payments for their citizen children as long as they have individual taxpayer identification numbers (ITIN) and their children have Social Security numbers.
How much will I get?
That depends on your household income and family size.
Eligible families can receive a total of up to $3,600 for each child under 6 and up to $3,000 for each one age 6 to 17 for 2021. That’s an increase from the regular child tax credit of up to $2,000 for each child up to age 17.
When will I see the money?
Parents will receive half their credit — up to $300 a month for each child under age 6 and up to $250 for each one ages 6 to 17 — on a monthly basis from now through the rest of the year. The payments will be made on the 15th of each month, unless it falls on a weekend or holiday.
They can claim the other half when they file their 2021 taxes next year.
Families who want to receive the payment as a lump sum can opt out of the monthly installments at the portal.
Do I have to do anything to get it?
The vast majority of families — roughly 39 million households covering 88% of children — will get the credit automatically because they have filed 2019 or 2020 returns claiming the credit.
Parents of more than 65 million children will receive the monthly payments through direct deposit, paper checks or debit cards, according to the agency. Some 80% of payments will be sent via direct deposit.
In early August, the IRS is scheduled to allow parents to update their mailing address, and later in the summer, the agency will let families update their income and marital status, as well as the number of dependents, which is important for anyone with babies born in 2021.