Starting July 15, parents will be eligible to receive a new monthly payment for each child thanks to a new federal law.
Called an advanced child tax credit, the monthly payments are connected to your income taxes. If eligible, parents may receive half of their annual tax credit money in the form of monthly payments. Parents will receive the other half of the credit when they file their income tax returns.
Part of the American Rescue Plan, which President Joe Biden signed in March, the new advance payments add to the child tax credit, which has existed in some form since 1997. The amount has increased over the years and will increase again with the new program on July 15. For now, the advance payments and increased amounts run through Dec. 15, 2021.
Child tax credit 2021: What to know about new advance payments
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Child tax credit 2021: What to know about new advance payments
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