The payments from the Child Tax Credit portion of the American Rescue Plan will start hitting bank accounts in the next month.
The credit is largely for parents with children under 6 years of age, as they are the only eligible group for the full benefit amount of $3,600. This does not mean, however, that only parents of younger children will be eligible for all of the benefits entirely.
The Child Tax Credit will provide a one-time payment of up to $500 for 18-year-olds and those aged 19-24 who are full-time college students. For example, if you have two children who are both in college, you could receive up to an extra $1,000 in child tax credit benefit. During a year when expenses were tight for almost all American households, every bit counts.
If your adjusted gross income is $75,000 or less as a single filer, $112,500 as a head of household or $150,000 filing jointly, you will get the full $500 for each eligible child who is a college student. If your income is higher than the income threshold, your payments will begin to phase out and decrease by $50 for every $1,000 of income over the threshold. These thresholds apply for each age group and for each varying benefit amount.
If you do not normally file a tax return, or claim “non-filer” status, you can still receive these benefits. The IRS has set up specific portals for these individuals to input their information and register for child tax credit availability. This specific portal is said to be up and running by the end of this week or next. The portals can be found here.
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Last updated: July 12, 2021