The first advance payments of the Child Tax Credit are scheduled to be distributed to American families today (July 15).

The Biden Administration's American Rescue Plan, approved earlier this year, expanded the amount and eligibility for the existing child tax credit by allowing half of the credit to be prepaid. Those who choose to prepay will receive the credit in monthly installments from July through December 2021.

With this expansion, eligible families will receive up to $3,600 per child under age 6 and up to $3,000 per child ages 6-17 (including children who turn 17 by the end of 2021). Advance payments would be limited to $300 or $250 per month per child, respectively.

The expanded credit would be phased out by $50 for each $1,000 of income for taxpayers whose income exceeds $75,000 (for single taxpayers) or $150,000 (for married couples combined).

For families exceeding these income limits, the regular child tax credit would continue to apply, up to $2,000 per eligible child, at one time at the end of the tax year.

Generally, eligible families who filed a tax return in 2020 or 2019 (or used the IRS non-filer tool) do not need to take any action to claim the expanded child tax credit.

However, they can visit the Child Tax Credit Update Portal on IRS.gov to verify that their account transfer information is on file and add or update it if necessary. The information you change now will be effective for the August 13 payment.

Families not enrolled in direct deposit will receive a paper check instead.

The portal also offers the option to cancel prepayment. Families who do so will receive the remaining balance in a lump sum when they file their 2021 tax return in early 2022. You may consider skipping prepayment if any of the following apply:

You must create an online account on the IRS website and submit images of various forms of identification, such as a driver's license or passport, in order to use the Child Tax Credit Portal Note. You may also be required to undergo a remote interview to verify your identity.

Finally, if you are wondering how much you are eligible to receive, enter your information into this child tax credit calculator.