Nearly 40 million households eligible for increased monthly child tax credit payments
by Mike Brest, Breaking News Reporter |
| May 17, 2021 08:11 AM
Millions will be eligible to start receiving an increased child tax credit over the summer.
The Treasury Department said on Monday that 39 million families, nearly 88% of children, will be eligible to receive the payments as a part of President Joe Biden’s $1.9 trillion coronavirus relief package.
“The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children,” President Joe Biden said in a statement. “With today’s announcement, about 90% of families with children will get this new tax relief automatically, starting in July.”
“While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come,” he added. “For working families with children, this tax cut sends a clear message: help is here.”
Families that qualify for the benefit will receive a payment of up to $300 per month per child under 6-years-old and $250 for a child between the ages of 6-17, which would amount to $3,600 and $3,000 annually. There is no cap on how much a family can receive, whereas it had previously been capped at $2,000. The payments are set to be distributed starting July 15.
Eligibility for the payments will be determined by people’s 2019 and 2020 tax years, and the new guidance will be in effect until 2025, though some Democrats want it to be a permanent fixture.
The administration removed the income threshold, making more poor families eligible for the benefits. The Center on Budget and Policy Priorities predicted that the expansion will move an additional 4.1 million children above the poverty line and cut the number of impoverished children by more than 40%.
https://www.washingtonexaminer.com/news/nearly-40-million-households-eligible-monthly-child-tax-credit-payments?utm_campaign=article_rail&utm_source=internal&utm_medium=article_rail
