KEY POINTS

  • The IRS will begin sending out monthly child tax credit payments on July 15
  • The agency will also release a tool to allow nonfilers to provide their information to the agency
  • Families can opt-out of monthly payments and receive the money in a lump sum after filing their 2021 returns

Millions of American families are set to receive more payments this July as the Internal Revenue Service announces the distribution date for Child Tax Credit payments. 

IRS officials announced Monday that they had begun sending letters to more than 36 million American families who may be eligible to receive the monthly Child Tax Credit payments starting July 15.

“The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July,” a post on their website read. 

Families can receive monthly payments worth $300 for each qualifying child under age 6 and $250 for each child ages 6 to 17. It will issue payments on July 15, August 13, September 15, October 15, November 15 and December 15.

The IRS also announced plans to release online tools that would help families check whether they’re qualified for the monthly checks “in the next few weeks.” The tool will also allow families to opt out of monthly payments and instead receive the full amount of $3,000 or $3,600 after filing their 2021 return next year. 

"The idea is Congress passed these rules to get money into the hands of people quicker, but some people don't necessarily want the money spread out over the last six months of the year, they'd rather get it all at once," Henry Grzes, a member of The American Institute of Certified Public Accountants (AICPA), told WUSA9. "So there will be an option to opt-out."

The IRS will also open a separate portal for Americans who don’t typically file their income taxes. It will allow users to provide their information to the IRS, including the number and ages of their children. 

The monthly child tax credit payments are only available for families meeting the income eligibility, which are $75,000 per year for single taxpayers, $112,500 annually for heads of household and $150,000 per year for married couples filing jointly. 

The payments would phase out for individuals earning $200,000 and couples earning $400,000. 

Internal Revenue Services (IRS) The IRS is expected to begin sending out tax refunds to eligible Americans who received the 2020 unemployment benefits. Photo: Chip Somodevilla/Getty Images