We're just one day away from the next government direct payment: On July 15, the first of the monthly child tax credit advances will start getting distributed to eligible taxpayers. These payments are funded by the massive $1.9 trillion economic aid bill passed in March—which also sent out stimulus checks of up to $1,400.
For one year, the $1.9 trillion American Rescue Plan upped the child tax credit from $2,000 to $3,000 per dependent ages 6 to 17; for children ages 5 or younger, the credit was increased from $2,000 to $3,600 per dependent. Up to half of those advances can come through monthly checks this year.
Here's what else to know.
When will the rest of the child tax credit payments come?
The child tax credit advances will go out on the 15th day of every month between July and December, except when the 15th falls on a weekend. According to the White House, the checks are set to go out on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and Dec. 15.
Eligible parents and guardians will receive up to $300 per month this year for each child age 5 or under, or $250 per month for each child between the ages of 6 and 17.
Advance payments of the 2021 #ChildTaxCredit will be made regularly from July through December to eligible families. The advance payments will total up to 50% of the credit. More from #IRS at https://t.co/535gR8FJvp pic.twitter.com/BeuTuq3C14
— IRSnews (@IRSnews) July 14, 2021
Who is eligible for the expanded child tax credit?
Single filers whose modified adjusted gross income is less than $75,000 per year and couples filing jointly earning $150,000 or less per year can qualify for the full child tax credit for each of their dependents. Taxpayers earning above those levels will gradually see their payments phase out. For more information on the child tax credit phaseouts, check out this Fortune guide.
How will the checks come?
The money will come either via direct deposit, in the mail, or in your 2021 tax return.
As Fortune has previously reported, if IRS internal records show a taxpayer is eligible, that taxpayer will automatically be enrolled to receive the monthly advances starting on July 15. These distributions will be deposited directly into the bank accounts of eligible taxpayers who have their account information on file with the IRS. The rest of eligible taxpayers will either get it via a mailed paper check or debit card.
Taxpayers can opt out of the monthly advances and instead receive the credit as a lump sum in their 2022 tax return. While it's too late to opt out of the July 15 payment, taxpayers can opt out of the remaining monthly payouts here.
This story was originally featured on Fortune.com