ORANGE COUNTY, Fla. — As many parents struggle to make ends meet during the pandemic, the Biden administration says enhanced child tax credit payments will go out to millions of parents beginning in mid summer.
What You Need To Know
- As part of the American Rescue Plan, many parents will start receiving enhanced child tax credit payments this summer
- The payments would include $300 a month for each child younger than 6, and $250 per month for kids 6-17
- Payments will be based on taxpayers’ 2020 or 2019 returns
A day at the park with a friend is a good stress relief for Tiffany Days — it’s been a difficult year for her.
She’s a parent of a 17-year-old daughter and lost her job during the coronavirus pandemic.
“It’s the first time that I’ve not had a job,” said Days.
And now Days and millions of other parents, are going to get some help in the form of an enhanced child tax credit as part of the American Rescue Plan.
“A little help goes a long way — goes a long, long way,” said Days.
The enhanced portion of the credit will be available for single parents who make up to $75,000 — heads of households earning $112,500 and married couples making up to $150,000 a year.
Eligible parents could get $300 a month for every child under age 6 and $250 a month for ages 6 to 17.
Dr. Brian Walkup teaches finance in the Crummer Graduate School of Business at Rollins College.
“It provides an additional level of disposable income to some families that wouldn’t have had it otherwise,” he said.
Walkup said some parents might save the money, but others will spend it on food and necessities for their children.
“There will definitely be some direct impacts on the economy of this new money being in family’s hands and them having the opportunity to spend it,” he said.
Days said this money will go a long way to help pay for fees and other expenses.
“This is something that’s meant for good — to alleviate some of the stress that a lot of people are experiencing,” said Days.
Payments will be based on taxpayers’ 2020 or 2019 returns.
Beginning in July and lasting through December, the payments will go out on the 15th of each month.