$3,000/$3,600 Child Tax Credit: how do I know if should have received the IRS letter?

The White House is eager to inform families about the upcoming monthly direct payments and has announced the introduction of Child Tax Credit Awareness Day to spread the word.

$3,000/$3,600 Child Tax Credit: how do I know if should have received the IRS letter?

Earlier this month the IRS confirmed that they will be sending out letters to all recipients of the new-look Child Tax Credit, informing them of the monthly payments that will soon be coming their way.

The announcement stated that the first wave of letters will see mail sent to 36 million households across the United States, and they will send more as they work through the backlog of 2020 tax returns. The IRS say this will be followed by “a second, personalized letter listing an estimate of their monthly payment.”

Who should have received a Child Tax Credit letter from the IRS?

The tax authority first announced that these letters would be distributed on 7 June, so it may take a few more days for them to arrive for some recipients. As mentioned, some people may only become eligible for the payments once their 2020 tax returns have been processed meaning their letters will be included in a subsequent wave.

However, we do know the eligibility requirements for the expanded Child Tax Credit programme and how much the payments will be worth. Households will be sent a monthly direct payment of up to $300 per child for each qualifying child aged younger than six, and up to $250 per child aged between six and 17.

The full amount will be sent to individual filers with an adjusted gross income (AGI) of $75,000 or less; heads of household with an AGI of $112,500 or less; and married couples who file jointly with an AGI of $150,000 or less.

If your household earnings are below these thresholds you will be eligible to receive the full amount from the Child Tax Credit, but the payments phase out above those limits. The amount your family is entitled to will be included in a subsequent letter, but the IRS will also be launching an online portal where recipients can track payments and update their personal information if required.

White House announces Child Tax Credit Awareness Day

The White House estimates that the new system could halve the number of children in poverty over the next 12 months. The letters are part of an ongoing effort from the Biden administration to better inform the American people about the hugely significant new programme.

Another new development came on Friday when Vice President Kamala Harris announced that a Child Tax Credit Awareness Day wilbe held on 21 June 2021, to draw more attention to the programme. Harris made the announcement while visiting a child care centre in Washington DC.

The official press release says the event will be used to encourage “elected officials, organizations that fight for children, and faith-based organizations, to help low-income families—who may have such low-incomes that they are not required to file taxes—to use a new, easy Child Tax Credit sign-up tool to help give their children a lifeline out of poverty. “