The Lead: Child Tax Credit Starts Today
The U.S. government began sending child tax credits today. Approximately 39 million families with 65 million children will receive these credits.
The tax credit was established in March with President Biden’s American Rescue Plan. It gives a credit of $300 per month for children under 6 years old and $250 per month for children between the ages of 6 and 17 years old. This will be sent as monthly checks or deposits to families who have an income of $150,000 or less for two adults or $75,000 or less for individuals.
Families who make more than that do not qualify for payments but do qualify for a credit on their taxes of $2,000 per child under the age of 17.
So what should you do to make sure you qualify?
Well, the IRS makes that determination, not you. It is based on your most recent tax return, which should be 2020 if you filed on time, or 2019 if you filed for an extension.
All monthly payments should now happen on the 15th of every month until December but President Biden is pushing hard for legislation that will make this permanent.