Rep. Peter DeFazio (OR-04) on Monday announced the Internal Revenue Service will start delivering new child benefits to eligible families July 15.
The tax credit payments are part of the American Rescue Plan, which DeFazio strongly supported. More than 138,100 children in Oregon’s 4th district – 90.4% - will benefit from this tax credit.
“Thanks to the American Rescue Plan, these new child tax benefits will set Oregon’s children up for success and put money in the pockets of hardworking parents,” said Rep. DeFazio (OR-04). “I’m proud to have supported this critical legislation that will help millions of families across the country build better lives for their kids.”
How Much are the Child Tax Credit Payments?
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 July 15 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
The monthly benefit will be deposited directly into most families’ bank accounts on the 15th of every month, or the closest day if the 15th falls on a holiday or weekend. Families will receive their remaining expanded Child Tax Credit when they file their 2021 tax return.
Who Qualifies for the Child Tax Credit Advance Monthly Payments?
Families will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head as household, or $150,000 for people who are married and filing jointly.
To be eligible, children must:
• Have a Social Security number,
• Live with you for at least half the year,
• Be under the age of 18 as of December 31, 2021, and
• Be claimed on your tax return.
Children are eligible if they are your children, adopted children, step-children, half-siblings, foster children, grandchildren, nieces or nephews, or other certain relatives. The adult filing taxes must have a Social Security Number or an Individual Taxpayer Identification Number.
How Can Families Get Help Preparing and Filing Their Taxes for Free?
Free tax preparation services are generally available until the tax filing deadline. Families should file their taxes even if they do not have earnings to report or do not normally file, because the IRS needs information from tax returns in order to calculate and issue monthly advance payments.
• Eligible families can file taxes for free online through the IRS Free File program at https://apps.irs.gov/app/freeFile/.
• Families where the parent or caregiver is aged 50 or older can use this AARP tool to find free tax help near them at https://secure.aarp.org/applications/VMISLocator/searchTaxAidLocations.action