Dear USET/USET SPF Family,
The Consumer Financial Protection Bureau (CFPB) will be hosting a webinar on the forthcoming Advance Child Tax Credit authorized by the American Rescue Plan. This tax credit will be distributed by the Internal Revenue Service (IRS) to eligible families during the month of July. The CFPB webinar will provide information about the Child Tax Credit and IRS web portals, and details on how to apply to receive the credit. Information on the webinar is as follows—
About the Child Tax Credit
The American Rescue Plan Act of 2021 expanded the Child Tax Credit from $2,000 to $3,000 per child ages 6 through 17, and $3,600 for children under age 6. It also raised the age limit from 16 to 17 and made the credit fully refundable in 2021. All working families will get the full credit if they make up to $150,000 for a couple, or $112,500 for a family with a single parent (also called Head of Household). Higher income families may still be eligible for a portion of the expanded tax credit. Couples with income under $400,000 and single parent families with income under $200,000 will qualify for at least the $2,000 per child tax credit.
Beginning July 15, 2021, and continuing through the remainder of calendar year 2021, the Child Tax Credit will be made through advance monthly payments to qualifying families. Tax return and 2020 Economic Impact Payment information submitted to Treasury will be used to automatically enroll eligible families to receive advance payments. It is anticipated that 80% of families will receive the payments via direct deposit, while others will receive payments through the mail. Families and Heads of Households will receive $250 per child between the ages of 6 through 17, or $300 per child under the age of 6. These payments will amount to 50 percent of the total 2021 Child Tax Credit for eligible families. The remainder of the tax credit can be claimed when a couple or single parent files their 2021 tax returns.
For more information on the Child Tax Credit, please visit the White House’s Child Tax Credit website by clicking here. To view a one-pager informational document on the Child Tax credit, please click here. The Department of the Treasury also has information on regarding Child Tax Credit payments on its website and can be found by clicking here.
For more information, please contact Brian Howard, USET SPF Senior Policy Analyst, at email@example.com.