Many Arizona families will soon get monthly payments because of changes made to the child tax credit as part of the American Rescue Plan. The Internal Revenue Service will pay half the total credit amount in advance over six monthly payments beginning July 15. Taxpayers will claim the other half when filing their 2021 income tax return.
The 2021 child tax credits are $3,000 per child ages 6 to 17 and $3,600 per child for ages 5 and younger. The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes. The 2021 child tax credit is a significant increase; the 2020 child tax credit was $2,000 per child, only $1,400 of which was refundable.
All working families who make up to $150,000 per couple, single filers who make up to $75,000, and families with a single parent (head of household) who make up to $112,500 are eligible for the payments.
To qualify for advance Child Tax Credit payments, recipients must have filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return. Those who did not file can still request the payments as a non-filer at irs.gov/childtaxcredit2021
The IRS is hosting two informational sessions in greater Phoenix this month about the new child tax credit:
- 9 a.m. to 2 p.m., Friday, July 9, at Mesa Community College’s Downtown Center, 165 N. Centennial Way, Room 110, Mesa
- 10 a.m. to 7 p.m., Saturday, July 10, at IRS Taxpayer Assistance Center, 4041 N. Central Ave., Phoenix.
The IRS also is cautioning that scam artists may try using the advance Child Tax Credit payments as a cover for schemes to steal personal information and money. Remember: The IRS never initiates contact by email, text message or social media channel to request personal or financial information. Find more details at childtaxcredit.gov or irs.gov/childtaxcredit2021