Payments for parents will start soon; $ 300 a month could be permanent, White House says
The next round of stimulus payments target families in the form of monthly payments from a newly expanded child tax credit.
On July 15, “almost all” working families will begin to see $ 250 to $ 300 per child automatically deposited into their bank accounts or sent to their mailboxes, the White House said. The expanded credits are part of President Joe Biden’s US bailout, the latest effort to boost the economy amid the COVID-19 pandemic.
- After: Stimulus checks for parents: here’s when the child tax credit starts and how you can decide on payment options
What is happening?
Previously, the child tax credit was $ 2,000 for most families. The newly increased amount brings this amount to $ 3,000 per child 6 years of age and over and $ 3,600 for children under 6 years of age. Most payments will be made automatically on the 15th of the month for July, August, September, October, November and December. . The remainder of the credit can be claimed when filing 2021 taxes.
Couples earning less than $ 150,000 and lone parents earning less than $ 112,500 are eligible for the full benefit. Above these income levels, the additional amount above the existing credit of $ 2,000 – either $ 1,000 or $ 1,600 per child – is reduced by $ 50 for each additional $ 1,000 modified AGI.
Do you have to do anything to get payment?
If you filed your 2019 or 2020 tax return or signed up for previous stimulus payments using the IRS non-filer tool last year, your payment should arrive automatically ( unless you decide to opt out in favor of claiming the full amount of your taxes). An opt-out portal is coming soon, the IRS said.
What if I didn’t declare taxes?
You can use the IRS tool for non-filers to register for the child tax credit. You can see more about it here.
Will these benefits continue after 2021?
President Biden said he was pushing for the expansion of the tax credit to be made permanent. However, Congress has not yet considered the matter.
“The new child tax credit passed in the US bailout is only valid for 2021 – but President Biden’s US Family Plan proposes to extend the credit for years and years to come,” he said. declared the White House.
- After: In addition to the child tax credit, you may be eligible for a rebate of up to 16K in child care expenses