Families with children can expect to receive more money by July due to the expanded Child Tax Credit. The IRS has announced that starting in July, working families can expect to receive up to $3,600 per child for 2021.
The extra money comes as part of a short-term expansion of the child tax credit. Every qualifying household with children that qualified for the last round of stimulus checks is set to receive the child credit cash.
Who Gets More Money?
If you’re a married couple earning under $150,000 or an individual earning less than $75,000, you’re able to receive a $250 monthly payment for each child between the ages of 6 to 17. Payments will start in July and run through December. For children under 6, families can expect to receive $300.
So, when adding it all up and depending on the ages of your children, you’ll receive a credit of either $3,000 or $3,600 for this year. The monthly payments will account for the first half, while the other half will be refundable next year when filing your taxes for 2021. The expansion of the child tax credit increases the credit by $1,600 more per child. Struggling families affected by the ongoing pandemic will surely welcome the checks.
Previously, you could claim a credit of as much as $2,000 per child, and just $1,400 was refundable. Under this expansion, however, single parents earning more than $75,000 and couples with incomes over $150,000 won’t receive the full payments but may still qualify for some support.