Beginning Thursday, families across the country will be receiving a monthly child tax credit via the American Rescue Plan.
The monthly payments, which are also called an advanced child tax credit, is linked to your income taxes. Qualified parents may be receiving half of their yearly tax credit money through monthly payments. When they already file their income tax returns, they can get the remaining half of the credit.
For the complete child credit amount this year, families with one or more children below 18 years of age can qualify if their income is under $75,000 for persons filing their taxes alone; $112,500 for persons filing as a household head; and $150,000 for couples who combine tax filing.
Also qualified are individuals who earn more incomes but only for smaller child tax credit, and will be according to their income.
For each child up to five years of age, families can receive $300 a month and if their child is aged 6 to 17, $250 per month can be provided.
Rep. John Yarmuth, D-Ky, said on Wednesday that most of the qualified families do not need anything to make sure that they can get the monthly tax credit money.
“If you filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically,” Yarmuth said. “You don’t need to sign up or take any action.”
The child tax credit to families has been provided by the US government for years but there were some main changes with the American Rescue plan passed by the congressional Democrats.