child tax credit in relief bill

I see that they will be increasing to 3600 for under 6 years only and 3000 from 6-17 years old from the previous 2000.

what I'm confused on is they are saying you can get half of it from July to December and then claim other half on taxes.

can anyone explain in "easy" terms"

child tax credit in relief bill

If you make under 150k as a married couple, or 75k as an individual filer, you qualify for the 3600 credit (or 3000 if child is 6-17). It will phase out by $50 for every $1000 more you make, so an individual could be making in the 90s and get some sort of boost in the credit.

The credit right now is 2,000 per child for couples making under 400k/year which is still remaining, but that additional boost has those lower income requirements.

As far as the July thing: that is if you opt to receive it monthly. For example, if you qualify for the full $3600 credit, you can start getting monthly checks of $300 beginning sometime in the July. They are going to set up an online portal where you can update dependents if you give birth and things like that. Be aware, however, that if you select to receive monthly payments and you end up making more when you file your 2021 taxes, you will owe that back. If you cut it close, it might be a better/safer option to just get the full credit when you file your taxes in 2021.