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The American Rescue Plan Act – which President Biden signed into law earlier this year – includes a revolutionary expansion of the existing Child Tax Credit (CTC). This new CTC – a provision my Ways and Means Committee colleagues and I helped craft – will be a guaranteed monthly income for families nationwide through the end of 2021. The following Americans are eligible to receive this benefit:
Married taxpayers earning under $150,000 per year
Heads of households earning under $112,500 per year
Single taxpayers earning under $75,000 per year
The benefit will be paid out as follows:
$250 per month ($3,000 total) for each child age 6-17
$300 per month ($3,600 total) for each child age 0-5
These payments will begin on July 15, 2021, and families can expect their benefit to be direct deposited into their bank accounts on the 15th of each ensuing month. When you file your taxes in 2022, you will receive a lump sum payment to make up the balance of your total benefit.
Previously, this benefit was paid out as a yearly tax credit, but the American Rescue Plan Act instituted monthly payments and expanded the benefit to include those who earn too little income to pay taxes. In California's 34th Congressional District, the CTC will benefit 139,200 children across 41,300 households, lift 17,400 children out of poverty, and lift 5,900 children out of deep poverty. I am also fighting to make this CTC permanent beyond 2021.
To access the Internal Revenue Service's (IRS) portal to update your direct deposit information, please click here.