Here's What You Need to Remember: The IRS has already sent notices to the roughly 36 million American families it believes to be eligible for the payments and will be sending an additional letter that includes an estimate of payments.
In just over a month, millions of Americans will begin to receive the first advance payments as part of the expanded Child Tax Credit, which comes as the distribution of stimulus payments is set to wind down.
The IRS recently announced the distribution of another batch of direct federal stimulus payments, which saw the agency send out an additional 2.3 million payments worth more than $4.2 billion. This brings the total number of third-round stimulus payments distributed by the IRS to 169 million, with a total value of roughly $395 billion. The IRS has now, however, used up most of the $410 billion dollars made available to it for use in the stimulus payments by the American Rescue Plan, and the IRS is now likely approaching the end of its campaign to distribute the payments.
The potential end of the distribution of stimulus payments comes as millions of Americans are increasingly calling for additional stimulus payments, with a number of online petitions now collectively holding over 2.6 million signatures. Despite this public support – as well as support for further payments from Congressional Democrats – it appears unlikely that a fourth stimulus payment will be coming anytime soon.
While it falls short of the $2,000 monthly stimulus payments many people have been calling for, those hoping for an additional payment should now look forward to the start of the advance payments as part of the expanded Child Tax Credit. According to the IRS, the payments are set to begin on July 15, with subsequent payments coming on the 15th of every month through December (with August proving to be the only exception, as the payment for that month is instead scheduled for the 13th).
Significant changes have been made to the Child Tax Credit for this year that will impact the size of payments that people can expect, as well as who might be eligible to take advantage of the credit. Whereas the credit normally provides a $2,000 payment for children under six years of age, the credit this year will make $3,600 available for children up to six and $2,000 for children between the ages of six and seventeen. With payments set to be split between advance monthly payments and a lump sum paid out during next year’s tax season, this works out to monthly payments of $300 for children up to six and $250 for older children.
The IRS has already sent notices to the roughly 36 million American families it believes to be eligible for the payments and will be sending an additional letter that includes an estimate of payments.
Eli Fuhrman is a contributing writer for The National Interest. This article first appeared earlier this year.