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As part of the $1.9 trillion American Rescue Plan Act signed into law by President Biden back in March, the IRS is preparing to launch the portal for the $3,000 child tax credit. “We will launch by July 1 with the absolute best product we are able to put together,” said commissioner Charles Rettig on Tuesday during a hearing with the Senate Finance Committee.
Per the new law, families with children ages 6 to 17 will receive an annual benefit of $3,000 for each child and $3,600 per child under the age of 6 for the 2021 tax year.
Full credit is available to families with qualifying children and an adjusted gross income of less than $75,000, or $150,000 for married couples filing jointly. This will gradually reduce for individuals who earn more and cease for those earning $95,000, or $170,000 for married couples. Families making less than $200,000 a year, or $400,000 for married couples, may still be eligible for the regular child tax credit, which is $2,000 per child under the age of 17.
Rettig expressed doubts about the timing of the launch several weeks ago, due to the tax filing deadline being pushed from April 15 to May 17. However, when Sen. Mike Crapo, senior Republican senator from Idaho and Finance Committee ranking member, asked Rettig when the secure online portal and nonelectronic processes will be fully operational, Rettig stated that they will be ready by July 1, which is the statutorily mandated deadline.
These payments are scheduled to be disbursed to families who filed a 2020 tax return on a monthly basis starting in July, continuing into December. Monthly payments will be $250, or $300 for children under the age of 6. Families can claim the remaining half of the credit when filing taxes for the 2021 year.
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This article originally appeared on GOBankingRates.com: IRS Plans To Start $3,000 Child Tax Credit Payments in July