(NewsNation Now) — The first newly-increased child tax credit payment is being sent out to qualifying families, nearly four months after it was passed.
The IRS will send payments out on the 15th of every month through the end of the year. The only exception is August, when they will send the money on the 13th. President Joe Biden has expanded the credit as part of coronavirus relief.
NewsNation affiliate WDAF reports that some parents in Kansas and Missouri already received their deposits Wednesday night ahead of the official rollout.
The IRS said about 60 million families can expect to receive payments.
“For the first time in our nation’s history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor’s visits, school supplies, and groceries,” Treasury Secretary Janet Yellen said in a statement. “This major middle-class tax relief and step in reducing child poverty is a remarkable economic victory for America – and also a moral one.”
Here is what you need to know:
How much child tax credit money will I get?
The child tax credit has increased from $2,000 per child to $3,000 per child under the American Rescue Plan, passed in March.
Some 15 million households will now receive the full credit. The monthly payments amount to $300 for each child who is 5 and younger and $250 for those between 5 and 17.
Parents of children under age 6 would be eligible for an even larger $3,600 total credit – all tax free. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously, children had to be 16 or younger.
You can do the math for your family on the tool below.
What if I have a child in 2021?
The IRS bases its payment to you on your 2020 tax return by default. But, if you need to make changes, you can use their Child Tax Credit Update Portal.
How long will child tax credit payments last?
These increased, monthly payments are guaranteed through the end of this year, but they face an uncertain future after that. Democrats in Congress want to extend them through at least 2025, but Republicans have been lukewarm on the idea because of the cost.
Will I get a check or deposit?
As with stimulus payments, the vast majority of eligible Americans won’t have to deposit a check to get their advanced credit. The IRS says direct deposits will be made into the bank account currently on file with the agency. Only those who are not enrolled for direct deposit will get a physical check.
If you’ve already filed your taxes for 2020, there’s nothing for you to do but wait for your payout.
“The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner,” the IRS urged in an online update about the payments.
The agency has launched a payment management portal that allows filers to change their banking information.
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Nexstar Media Wire contributed to this report.