On Monday, May 17, 2021, the U.S. Department of the Treasury and the Internal Revenue Service announced that the first monthly payment of advanced Child Tax Credits (CTC) from the American Rescue Plan will begin on July 15, 2021. Approximately 39 million households, covering 88% of children in the United States, are slated to begin receiving monthly payments.
Treasury and the IRS also announced the increased CTC payments will be made on the 15th of each month, allowing families who receive the credit by Direct Deposit to plan their budgets around receipt of the benefit. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child between 6 and 17.
This announcement follows a meeting the previous week with Nacha and executives from the IRS, Treasury, Bureau of Fiscal Services, Federal Reserve Banks and Federal Reserve Board on how to best use the ACH Network to consistently deliver these payments each month from July through December 2021.
Households covering more than 65 million children will receive the monthly CTC payments through Direct Deposit, paper check or debit cards. Treasury and the IRS are committed to maximizing the use of Direct Deposit to ensure fast and secure delivery.