Families will receive the payments a couple of days early since the 15th – when the payments should go out each month – falls on a Sunday in August. Parents can expect $300 per child under the age of six years old and $250 per child aged six to 17 years old.
The payments will continue through the end of the year, meaning the maximum for each child is up to $3,600 for each child under 6 and up to $3,000 per child between the ages 6 to 17.
The further official pay dates will be: Sept. 15, Oct. 15, Nov. 15 and Dec. 15
The tax credit will go to individuals earning $75,000 or less, married couples making $150,000 or less and a single parent filing as the head of household making up to $112,500. For instance, a family with a 10-year-old and a 4-year-old would be eligible for a credit of $6,600 if they earn less than $150,000. They would receive a credit of $550 per month through December, and then $3,300 when they file their taxes in 2022.
The tax credit is tapered by $50 for every $1,000 a family makes over the income thresholds.
The payments make up half of the overall tax credit for families with children, with the other half to be claimed on families’ 2021 tax returns and paid directly after covering taxes.
If families earn too much to qualify for the sweetened tax credits, they can still receive the $2,000 credit for their children if their income level is below $200,000 for individuals and $400,000 for married couples.
"If you receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment," the IRS said on its website.
The IRS said 88% of all children living in the U.S. will qualify for the payments.