Tens of millions of families are getting extra help from the federal government — in an effort to help lift kids out of poverty.
The new child tax credits start rolling out July 15.
What You Need To Know
- Child tax credit payments start this week
- On July 15, parents with dependents will be sent the first installment of what could add up to $3,600 per child
- IRS: Child Tax Credit FAQ
It’s all part of President Joe Biden’s $1.9 trillion COVID-relief package. But there are some differences this time.
There’s more money involved now. And families can choose to get it in monthly payments, instead of a lump sum.
So let’s break down the numbers.
Starting Thursday, qualified families are set to receive a payment of up to $300 per month for each child under 6 years old, and up to $250 a month for kids 6 and up.
That equates to $3,600 annually for each younger child and $3,000 for each older child.
Up until now, the tax credit was capped at $2,000 per child.
It’s welcome news for mother Marisol Rodriguez.
"I didn’t know how soon," said Rodriguez, who has two children. "I just knew I was getting something.
"Right now, people need that money. So it is important to get it monthly. So you can count on that amount for anything. The rent or food or whatever."
So who qualifies?
- Single-filers making $75,000 or less a year.
- Couples earning $150,000 or less.
- And heads of households, making $112,500 or less.
Last month, Congressman Darren Soto (D-Florida District 9) said there could be bipartisan support for these increased tax credits to extend beyond a year, either in the form of a standalone bill — or as part of the president’s proposed $1.9 trillion Families Plan.
“We have big plans for the future for American families,” Soto said. “We stand with President Biden to extend the new child tax credit for years and years to come.”
Eligibility for the child tax credit is based on 2019 and 2020 tax years. The payments will be made on the 15th of each month, and they are automatic.
That means you have to "unenroll" if you want to claim the child tax credit when you file your taxes next year.