The second installment of the expanded child tax credit is set to reach the bank accounts and mailboxes of 35 million households this week and early next week.

Under the Biden Administration's American Rescue Plan, the existing child tax credit, which provides a year-end credit of up to $2,000 per eligible dependent, has been expanded to increase the amount paid per child and distribute up to half of the credit as a monthly advance to families.

With this expansion, children who are 17 or will be 17 by the end of 2021 will also be eligible for the credit. The regular tax credit is only available to children under age 17.

Families eligible for the expanded tax credit will receive up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17, monthly from July through December 2021.

Advance payments would be limited to $300 or $250 per month per child, respectively; single taxpayers with income over $75,000 and married taxpayers with income over $150,000 (filing jointly) would receive a tiered increase of $50 for each $1,000 of income.

The first advance was paid last month (July 15) and the remaining checks will be distributed on August 13, September 15, October 15, November 15, and December 15.

While the advance payments are cash payments directly to families, the IRS is also offering the option of not receiving a check and instead claiming the deduction in a lump sum on their 2021 tax return (the deadline passed earlier this month).

If you filed a tax return in 2020 or 2019, you do not need to do anything to claim the deduction; you should have already received your advance payment in July.

If something seems wrong or you need to change your direct deposit information, log into the Child Tax Credit Update Portal on IRS.gov and review the information on file.