Many Families Will Begin to Receive Monthly Child Tax Credit Payments Starting July 15
If you have children, if you file your taxes and if you make less than $150,000 a year, your family will benefit from President Biden’s American Rescue Plan in the form of monthly child tax credit payments. According to the plan, couples whose income is $150,000 or less will receive the full benefits for each child in their household. Approximately 88% of American children will qualify for these payments.
How much families can expect to receive per child depends on the child’s age. Children who are less than 6 years old will receive $300 per month starting July 15, 2021. Children who are between the ages of 6 and 17 will receive $250. The payments will be sent out each month starting in July. In most cases, the payments will be made via direct deposit.
The IRS determines eligibility based off of 2019 and 2020 income taxes, but it is possible to receive the tax credit even if you don’t file taxes. There is going to be an online portal for such circumstances. Additionally, if your family’s financial situation has changed or if you have recently had a baby, you can update your information through a separate online portal. That ensures that families will receive the tax credit they deserve.
In a statement, President Biden explained, “The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children. With today’s announcement, about 90% of families with children will get this new tax relief automatically, starting in July. While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come. For working families with children, this tax cut sends a clear message: help is here.”
Does your family qualify for the child tax credit? If so, in what ways will this extra money help you provide for your children?