Increase, big change coming for Child Tax Credit. Here’s what you need to know

Florida leaders raise awareness in Kissimmee

KISSIMMEE, Fla. – Community leaders came together Monday as part of a nationwide effort to raise awareness for the newly increased Child Tax Credit.

During a news conference at the Kissimmee Salvation Army facility, U.S. Rep. Darren Soto said there are more than 36 million households across the country who qualify to receive monthly advance payments starting July 15.

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“There’s a lot of families that could use that payment and not have to wait until the end of the year or the beginning of next year,” Soto said.

As part of the American Rescue Plan, the Child Tax Credit provisions increased the payments and greatly expand the number of families eligible. The practical result is direct payments for each child to families ranging from impoverished to solidly middle class — $3,600 per year for children under age 6 and $3,000 per year for older children. Roughly 39 million households will receive at least partial payments, covering an estimated 88% of American children.

Families with qualifying dependents could receive a $300 monthly advance for each child under 6 or $250 for older dependents.  Half of the total credit is scheduled to arrive between July and the end of 2021 and the rest would be part of tax refunds next spring.

“(Families) are expected to gain from this expanded tax credit in helping make ends meet,” Soto said.

Qualifying families who filed a 2020 tax return do not need to take any action to receive the tax credit payments.

Those who aren’t required to file a tax return are urged to use the IRS nonfilers portal.

The IRS said a second online tool will be available to let families opt out of advance monthly payments and instead receive a lump sum payment when a tax return is filed in early 2022.

For further details about the Advance Child Tax Credit payments, visit this website.

About the Author:

Mark Lehman became a News 6 reporter in July 2014, but he's been a Central Florida journalist and part of the News 6 team for much longer. While most people are fast asleep in their bed, Mark starts his day overnight by searching for news on the streets of Central Florida.