Washington D.C.  – Today, U.S. Rep. Terri Sewell (AL-07) is encouraging hardworking families to be on the lookout for monthly payments from the Child Tax Credit of up to $300 per month per child beginning July 15^th through December. 43,700 hard-working households, covering 93.5% of all children in Alabama’s 7^th District, could get up to $300 per month per child July-December and even more after filing their taxes next year.

“I know that many parents, grandparents, and guardians in Alabama have struggled to afford food, child care, health care, and other necessities long before this pandemic,” said Rep. Sewell. “That’s why I fought to include an expansion of the Child Tax Credit in the American Rescue Plan which House and Senate Democrats passed and President Biden signed into law in March.”

“I cannot overstate how transformational the expanded Child Tax Credit will be,” continued Sewell. “Starting today, hard-working Alabama families will receive monthly payments to afford housing, food, health care, child care, and other expenses. With the Child Tax Credit, we’re investing in our greatest asset, our children, by cutting child poverty in half and putting our kids on a path to success.” 

In the State of Alabama, the Child Tax Credit is expected to:

• Benefit 91% of children (or 1,004,200) 
• Impact 316,400 households
• Lift 82,700 children out of poverty
• Lift 43,100 children out of deep poverty

In Alabama’s 7^th District, the Child Tax Credit is expected to:

• Benefit 93.5% of children (or 138,300) 
• Impact 43,700 households with an average benefit of $3,200 per household
• Lift 14,200 children out of poverty
• Lift 7,200 children out of deep poverty

According to an analysis by the Center on Poverty and Social Policy at Columbia University, the expanded Child Tax Credit could cut child poverty in the United States by more than half.

Nearly all hardworking families should get their monthly payments automatically beginning July 15^th with no further action required. Families who did not file a tax return for 2019 or 2020 and who did not use the IRS non-filers tool last year to sign up for the Economic Impact Payments, should go online and use the IRS Child Tax Credit Non-filer Sign-up Tool to sign up today.

 

Major Tax Relief for Nearly All Working Families:

How Much Is the Child Tax Credit Expansion from the American Rescue Plan?

The American Rescue Plan expanded the Child Tax Credit to up to $3,600 per child for children ages 0 to 5 and $3,000 per child for children ages 6 to 17. 

The American Rescue Plan also authorized advance monthly payments of the Child Tax Credit through December 2021.  Beginning in July and running through December, qualifying families can get up to: 

• $300 per month per child for children ages 0 to 5.
• $250 per month per child for children ages 6 to 17

Families will get their remaining expanded Child Tax Credit when they file their 2021 tax return. 

Who Qualifies?

Families with children will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for people who are married and filing jointly.

How Do I Get My Payment?

Nearly all hardworking families should get their monthly payments automatically beginning July 15^th with no further action required. If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.

Families who did not file a tax return for 2019 or 2020 and who did not use the IRS Non-filers tool last year to sign up for the Economic Impact Payments, should go online and use the IRS Child Tax Credit Non-filer Sign-up Tool to sign up today.

Families who got their refunds from the IRS through direct deposit will get these payments in their bank account around the 15^th of every month until the end of 2021. People who don’t use direct deposit will receive their payment by mail around the same time.

Families will be able to determine their eligibility, check the status of their payments and more at IRS.gov/childtaxcredit2021 later this month.  

Watch out for scams

According to IRS.gov: “The IRS urges everyone to be on the lookout for scams related to both Advance Child Tax Credit payments and Economic Impact Payments. The IRS emphasized that the only way to get either of these benefits is by either filing a tax return with the IRS or registering online through the Non-filer Sign-up tool, exclusively on IRS.gov. Any other option is a scam.

Watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS never sends unsolicited electronic communications asking anyone to open attachments or visit a non-governmental web site.”