Child Tax Credit: Here's who will get up to $1,800 per child in cash — and who will need to opt out

About 36 million American families on July 15 will start receiving monthly checks from the IRS, as part of the expanded Child Tax Credit. Eligible families will receive up to $1,800 in cash through December — however, the tax credit has a complication that may prompt some families to opt out. 

The enhanced Child Tax Credit (CTC) was signed into law by President Joe Biden as part of the American Rescue Plan. The effort expands the benefit from a $2,000 credit, taken annually when you file your taxes, to up to $3,600 per child, with half the amount divided into six payments to be paid out in cash, on a monthly basis, from July through December. The rest is claimed on your 2021 tax return. The effort has some similarities to the three rounds of stimulus checks that have been distributed by the IRS to help people weather the pandemic. For one, the enhanced CTC and the stimulus checks are only available to eligible lower- and middle-class families, with upper-income households essentially shut out of the benefit. And secondly, the IRS will deposit the payments directly into bank accounts.