Beginning this week, millions of families with kids will receive extra money thanks to Child Tax Credit payments.
The expanded Child Tax Credit is among the provisions of the Biden-Harris Administration’s American Rescue Plan. The economic stimulus bill providing Covid-19 relief was passed by Democrats in Congress (citing its $1.9 trillion price tag, no Republicans voted for the measure) and signed into law by the president in March.
Families may qualify for a full credit if their income is below $75,000 for single filers; $112,000 for individuals filing as head of household, or $150,000 for those who are married and filing jointly. For every child 6-17 years old, qualifying families can receive $250 each month, and for every child under 6 years old, $300 each month.
“Parents, you don’t have to overcome this pandemic alone,” said Rep. Bonnie Watson Coleman (D-NJ) in a tweet. “The advanced child tax cuts are on the way!”
According to the White House, families who filed tax returns for 2019 or 2020 or signed up for a stimulus check from the IRS will receive the tax relief automatically with no further action required. The Child Tax Credit will come monthly via direct deposit or mail until December 2021.
Families who did not file a tax return for 2019 or 2020 and didn’t use the IRS Non-filers tool last year to sign up for Economic Impact Payments can sign up online.
According to IRS.gov, the agency is urging people “to be on the lookout for scams” using email, phone calls or texts related to the payments. Be aware that the IRS says it never sends unsolicited electronic communications asking anyone to open attachments or visit unauthorized non-government websites.