Today is Child Tax Credit Awareness Day, and here’s when your $3,000 benefit will arrive.
Before the first round of monthly payouts, the White House has named Monday Child Tax Credit Awareness Day.
Millions of Americans will start getting the extended government benefit included in President Joe Biden’s $1.9 trillion American Rescue Plan, which he signed in March, starting next month.
“On July 15th, automatic Child Tax Credit payments will begin to arrive in bank accounts and mailboxes. On the 15th of every month this year, that’s $500 or more for a working family with two kids,” Biden stated on Twitter.
“Most working families will receive automatic payments – no sign-ups are required; all you have to do is make sure you’ve filed your taxes,” the president said. These advantages are also available to people who do not earn enough to be obligated to file taxes.”
The payments are due to the decision to increase the child tax credit from $2,000 to $3,600 for children aged 6 to 17, or $3,000 for children under the age of 6.
The benefit will be distributed in two payments to qualifying households. Beginning in July and continuing through December, the first half will be paid in $250 or $300 monthly installments. Unless the 15th of the month falls on a weekend or holiday, the money will be sent on the 15th of each month until December.
On 2021 tax returns, the other half of the enlarged Child Tax Credit can be claimed.
A single parent must earn less than $112,500 to be eligible for the full payments. The income limit for joint filers is $150,000. Such with incomes in excess of those amounts will have their payments decreased.
The Child Tax Credit will be automatically awarded to anyone who has submitted a 2019 or 2020 tax return or signed up to get a stimulus check, according to the IRS. You can use the IRS’s Non-Filer Portal Tool on its website if you haven’t filed your tax return yet.
About 39 million households are expected to see the payments, according to the IRS, a figure the White House has said covers nearly 90 percent of the nation’s children.
The expanded Child Tax Credit is available only through 2021, but Biden’s proposed American Families Plan would extend the benefit for longer. If the benefit is extended beyond this year, it has the potential to reduce child poverty. This is a brief summary.