SUOZZI: “BE ON THE LOOKOUT! CHILD TAX CREDIT PAYMENTS TO HIT BANK ACCOUNTS ON JULY 15TH”
Millions of New York families will receive thousands of dollars under the expanded Child Tax Credit; Suozzi is urging qualifying families that would prefer to receive a lump sum rather than monthly payments to take action at IRS.gov now
Congressman Tom Suozzi (D-Long Island, Queens) announced that the advanced monthly payments for the expanded Child Tax Credit will begin to hit the bank accounts of New York families on July 15th. This expanded tax credit will be life-changing for millions and will help families with children struggling to meet their monthly expenses.
However, Suozzi is calling on families and filers to discuss if they would rather receive monthly payments or a lump-sum credit. In Suozzi’s district, the possibility exists that families who receive the monthly payments could owe money when they file their 2021 taxes or see a decrease in their tax refund. To avoid this, qualifying families may want to un-enroll from the monthly payments and opt-in to receive a lump sum credit – which they would receive when filing their 2021 taxes. Steps to unenroll from the advanced payments and information on which option works best for them can be found here.
“On July 15th, qualifying families will begin to receive financial help under the expanded Child Tax Credit,” said Suozzi. “This will be a game-changer for millions of families. However, I am urging families to consider if they would rather receive the monthly payments, or a lump sum at the end of the year so the amount of taxes they owe do not increase. The need will differ from family to family, but this is a conversation I’m urging all families and filers to have.”
How Much Is the Child Tax Credit Expansion from the American Rescue Plan?
The American Rescue Plan expanded the Child Tax Credit to up to $3,600 per child for children ages 0 to 5 and $3,000 per child for children ages 6 to 17. The American Rescue Plan also authorized advance monthly payments of the Child Tax Credit through December 2021. Beginning in July and running through December, qualifying families can get up to:
- $300 a month per child for children ages 0 to 5.
- $250 a month per child for children ages 6 to 17.
- Families will get their remaining expanded Child Tax Credit when they file their 2021 tax returns.
The full payments are available for a single parent making up to $75,000 or joint filers making up to $150,000 per year. The credit phases out by $50 for every $1,000 of income over the $75,000 for individual filers and $150,000 for joint filers. The credit equals to $0 for single filers with income of $240,000 and married filers with $440,000.
Qualifying families that do not wish to receive these advance monthly payments must take action with the IRS:
If a qualifying family does not wish to receive these advance monthly payments and would rather apply the credit to their 2021 taxes at the end of the year, they need to take steps to unenroll with the IRS. The July payments have already been processed. The deadline to unenroll for the August payment is August 2nd.