4 News Now Q&A: What should parents know about the new Child Tax Credit?

Q: What should parents know about the new Child Tax Credit?

A: If you are a parent who qualifies for the Child Tax Credit, your first payment should arrive sometime next week. You are automatically eligible if you meet the requirements and you filed your taxes in 2020.

To get you prepared for that first check, we’re answering your questions:

Who is eligible?

Parents with at least one child younger than 18 who meet the income requirements are eligible for the full credit.

Single parent households must make less than $75,000, and married couples must make less than $150,000 a year. If you make more than that, it does not mean you will not get any of the credit — you will just get less.

How much will the payments be? 

You won’t get your child tax credit payment all at once this year. The largest single payment arrives in 2022. Until then, you will get six smaller payments this  year to start using right away. Under the full tax credit, monthly payments will be $300 per child younger than 6, and $250 per child 6 to 17-years-old.

You can receive the advance child tax credit payment either by direct deposit or by check.

When will I get each payment? 

If you have already set up direct deposit with the IRS, then payments will show up in that bank account starting next Thursday. From then on, families will receive payments on the 15th of each month until December.

As of now, the advance payments of the child tax credit are scheduled to go only through the end of the year. That could be extended if a new law is passed.

What are you curious about? Submit your questions HERE.