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New $3,000 child tax credit to start payments in July, IRS says

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There’s good news for American families.

The IRS plans to begin sending monthly payments from the new $3,000 child tax credit in July, Commissioner Charles Rettig said Tuesday during a hearing with the Senate Finance Committee.

The new and significantly expanded child tax credit was included in the $1.9 trillion American Rescue Plan signed into law by President Joe Biden in March. Under the law, families will receive a $3,000 annual benefit per child ages 6 to 17 and $3,600 per child under the age of 6 for the 2021 tax year.

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Just a few months ago, Rettig testified that the IRS wasn’t sure it would be able to begin sending payments to families in July and that the checks might not be on a monthly basis at first.

He said that the agency was overwhelmed with the extended tax filing season, which was moved to May 17 from April 15 for individuals, and thus had less time and resources to devote to implementing and launching a portal for the child tax credit.

But on Tuesday, when Sen. Sherrod Brown, a Democrat from Ohio and ranking member of the Senate Banking Committee, asked Rettig if the IRS would be ready to start monthly child tax credit payments in July, he had a simple answer.

“We are,” Rettig said. “If we end up not being on track for some unforeseen situation we will advise you and the committee.”

The full credit is available to individuals who have children and adjusted gross income of less than $75,000, or $150,000 for a married couple filing jointly. The benefit will begin to phase out for taxpayers who make more money, and end for individuals earning $95,000 and married couples earning $170,000 filing jointly.

To see how much you could expect to receive, personal finance website Grow created a calculator that factors in your filing status, annual income and the number of dependents you have.

This is a developing news story. Check back for updates.

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