Here's What You Need to Remember: Parents should also understand that the monthly payments will only be disbursed till the end of the year. However, the nearly $2 trillion American Families Plan looks to change that, aiming to extend the benefits through the year 2025.
For all the talk about recurring coronavirus stimulus checks in Washington and all corners of America, the closest thing to that becoming a reality will occur on July 15—when the first batches of expanded child tax credits will begin hitting the bank accounts of eligible parents.
According to the White House, these enhanced credits will target nearly forty million financially wounded American families who are still struggling amid the ongoing pandemic.
Under President Joe Biden’s American Rescue Plan, eligible families will be able to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen—meaning that for a family headed by a couple earning less than $150,000, or an individual making under $75,000, they can now take home a $250 or $300 payment each month. Moreover, eighteen-year-olds and full-time college students who are aged twenty-four and under can give their parents a one-time $500 payment.
For those parents who have already filed their tax returns this year and fit into income thresholds, the best option right now is to stay patient. But for others, know that the Internal Revenue Service will launch two portals by July 1 to help expedite the payments to eligible parents.
According to the agency, these portals can be used to update and adjust personal financial information, such as bank account and routing numbers, and any changes to child dependents or to opt out of the monthly payments altogether if a taxpayer wants to do so. Know that those foregoing the checks will potentially be in line to receive a single lump sum during next tax season.
“Eligible taxpayers who do not want to receive advance payment of the 2021 Child Tax Credit will have the opportunity to decline receiving advance payments,” the IRS stated. “Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children. More details on how to take these steps will be announced soon.”
Parents should also understand that the monthly payments will only be disbursed till the end of the year. However, the nearly $2 trillion American Families Plan looks to change that, aiming to extend the benefits through the year 2025.
“The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children. … 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. For working families with children, this tax cut sends a clear message: help is here,” Biden said in a statement.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn. This article is being republished due to reader interest.