Recently, many families in Missouri and across the country began receiving deposits in your bank account or checks in the mail from the IRS. These payments are an advance of the Child Tax Credit that most families receive in their tax returns after filing each spring. So, if you have children under the age of 18 don’t be surprised when it arrives. Because it’s nearly impossible to keep up with all of the changes and new programs coming out of Washington, D.C. – particularly while wrangling kids everyday – hopefully this will clear up any potential confusion. 

As part of the American Rescue Plan which was signed into law at the beginning of the year, the Child Tax Credit has been expanded and the IRS was to begin releasing payments in increments starting July 15th. Half of the total credit amount will be paid in advance monthly payments. The other half should be claimed on 2021 income tax filings next spring. To be clear, this is money you would already be getting back from the IRS in your tax return. This new law sends the money early and in installments, meaning tax returns for eligibility families next spring could be a little lower than expected.