Child tax credit payments begin in one month |

Child tax credit payments begin in one month

Miguel Octavio
Updated: June 15, 2021 11:25 PM
Created: June 15, 2021 10:57 PM

(ABC 6 News) - In exactly one month, the IRS will be sending out more money to U.S. families.

It's part of the enhanced child tax credit bill under the American Rescue Plan signed by the president in March. The advanced payments are based on how many children there are in the family.

Qualified families with children 6 and under should expect up to $300 per child, while those with children between 6- and 17-years-old will get up to $250 per child monthly. 

Annually, that's $3,000 per child and $3,600 if they're under six. Payments will be made starting July 15 through December, which is half the credit. The rest will be claimed on taxes that families file next year.

The U.S. Treasury Department said 39 million families will qualify - that's about 88% of children receiving benefits without parents needing to take action

It's a lifeline for some struggling families but others said it's not necessary.

Millions of parents will be seeing additional income every month but some are feeling mixed about it. 

"It's something we need to get away from because otherwise we're going to create a whole generation of people who essentially expect the government will be there to bail them out every time and that may not be the case," parent Mike Mcgarry said.

Mcgarry said the economy is rebounding with help wanted signs and demand for labor, therefore the benefits shouldn't be needed.

Other parents said the money doesn't hurt.

"It's a car payment plus a little bit," parent Josh Litherland said.

But they said they are worried about the potential impact on the nation. 

"It's great to have the money but... how much debt are we putting on our kids?" parent Tashia Litherland said.

Still, parents acknowledge it could help families who are struggling the most.

Mark Williamson, financial advisor and vice president of Wealth Enhancement Group, said the IRS will look into 2019 and 2020 tax returns for qualification. 

Williamson said single people with reported income below $75,000 or married couples with reported income below $150,000 will qualify. 

But some families are choosing to opt out of the advanced payments and wait until next year instead. 

"There may be some people who don't want to get this money and want to bank all that up, so they get a bigger refund in April when they file taxes," Williamson said. 

The IRS also launched a new tool recently that's aimed to help families who don't normally file tax returns ensure they get the payments.

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