BILLINGS - Starting July 15 nearly all Montana families will start seeing as much as $300 a month per child drop into their bank accounts or by way of checks in the mail coming from President Biden’s Child Tax Credit plan.
However, questions remain from many about how families qualify and how much some families will likely get.
Starting this summer, the IRS is giving families advance payments to the child tax credit, half the total credit amount is being given out now.
While families will have to claim the other half when they file 2021 taxes, payments will be dispersed in monthly installments until the end of the year.
So, who qualifies for the child tax credit?
The IRS said couples making less than $150,000 a year or single parents making less than $112,000 and filing as heads of households will qualify.
What do I need to do to get the child tax credit?
Families in that tax bracket will get the child tax credit automatically.
If you filed your taxes in 2019 or 2020, can I get the credit if I didn't file taxes? Yes, the IRS says if you didn't earn enough money to file taxes you can use the non-filer tool to sign up on the IRS website.
So what are the qualifying family doesn't want those upfront payments? The IRS says that is an option too, and here's why some families may choose it: If you don't receive the monthly advanced child tax credit, you can claim the full credit when you file your 2021 tax return.
This can ensure that you get the most bang for your buck during tax season. It's a personal choice that some families may opt for and you can enroll on the IRS website.
Families who qualify are automatically enrolled to get those advanced payments.
And children under the age of 18 – with a valid social security number - qualify for the payments.
