The Child Tax Credit (CTC) monthly payments have been a lifeline for many families with children under the age of 17. The payments, which are up to $300 per month per child, are part of the American Rescue Plan and are designed to help families offset the costs of raising children. In this blog post, we will explore when the CTC payments will begin, how much you can expect to receive, and what you need to do to receive your payments.
When Will the CTC Payments Begin?
The CTC payments are scheduled to begin in July 2023 and will continue on a monthly basis through December 2023. The payments will be made on the 15th of each month, unless the 15th falls on a weekend or holiday, in which case the payment will be made on the next business day.
How Much Will I Receive?
The amount of the CTC payment will depend on the age of your child and your family’s income level. For children under the age of 6, the payment will be up to $300 per month. For children between the ages of 6 and 17, the payment will be up to $250 per month.
Do I Need to Take Any Action?
Most families will not need to take any action to receive the CTC payments. The payments will be made automatically to eligible families who have filed a 2022 tax return. However, if you have not filed a tax return, you will need to take action to receive the payments.
Eligibility Requirements
To be eligible for the CTC payments, you must meet the following requirements:
- Have a child under the age of 17
- Be a U.S. citizen or resident alien
- Have a valid Social Security number
- Meet certain income requirements
Income Requirements
The CTC payments are subject to income limits. For single filers, the income limit is $75,000. For joint filers, the income limit is $150,000. If your income exceeds these limits, your payment amount will be reduced.
How Will the Payments Be Made?
The CTC payments will be made via direct deposit or check. If you have direct deposit set up with the IRS, your payment will be deposited directly into your bank account. Otherwise, you will receive a check in the mail.
Payment Amounts
The payment amounts are as follows:
- For children under the age of 6: up to $300 per month
- For children between the ages of 6 and 17: up to $250 per month
Payment Schedule
The CTC payments will be made on a monthly basis, starting in July 2023 and continuing through December 2023. The payments will be made on the 15th of each month, unless the 15th falls on a weekend or holiday, in which case the payment will be made on the next business day.
How to Receive Payments
The CTC payments will be made via direct deposit or check. If you have direct deposit set up with the IRS, your payment will be deposited directly into your bank account. Otherwise, you will receive a check in the mail.
What to Do if You Haven’t Filed a Tax Return
If you haven’t filed a tax return, you will need to take action to receive your CTC payments. You can file a tax return or use the IRS’s non-filer tool to register for the payments.
Other Important Details
- The CTC payments are tax-free and will not affect your tax liability.
- The payments will be made to the parent or guardian who claimed the child on their tax return.
- If you have multiple children, you will receive a separate payment for each child.
FAQs
What is the Child Tax Credit (CTC) monthly payment?
When will the CTC monthly payments begin this year?
How do I know if I am eligible for the CTC monthly payments?
How will the CTC monthly payments be made?
The CTC monthly payments are a vital source of support for many families with children. If you are eligible, you can expect to receive your first payment in July 2023, with subsequent payments made on a monthly basis through December 2023. Remember to file your tax return to ensure you receive your payments.
