Here’s What the Child Tax Credit from the COVID Relief Bill Means for Your Family
First of all, the latest COVID relief bill includes a couple important benefits for families. The first one is another stimulus check. Individuals who make less than $75,000 and couples who make a combined amount totaling less than $150,000 will receive a stimulus check in the amount of $1400 per adult and per dependent. For example, if a family has two parents and two children and the income is less than $150,000, they would receive $1400 per person totaling $5600.
Besides the stimulus check, there is also a helpful increase to the child tax credit. Currently, when you’re filing your taxes, the child tax credit is set at $2000, but the new COVID relief bill would increase that amount to $3600 for each child under the age of 6 and $3000 for older children up to the age of 17.
Instead of receiving the child tax credit as one lump sum after filing your taxes, parents can choose to receive half of the tax credit in monthly payments of $300 per child starting in July 2021. The rest of the payment would come as a lump sum. The hope is that the option of spacing out the payments would help families pay for childcare expenses, food, medicine and anything else they need on a monthly basis.
Watch the video below for more details about the stimulus checks, child tax credit and how the bill could help childcare workers.
Would you rather receive the child tax credit as a lump sum or in monthly payments? Do you think the child tax credit increase is a good idea? Are you eligible to receive another stimulus check? If so, how will you spend it?