Millions of families across America will receive tax credits or payments beginning July 15 to help cover the costs of raising children. Instead of waiting until the end of the year, parents will be able to collect up to $300/month per child, and they get to choose how they spend it. This could mean $900 a month for low-income moms with three children.
BUT… some families will only receive these funds if they file a tax return for last year – whether or not they owe taxes.
Here’s what you need to know:
– How to file.
– “If you filed taxes for 2020 by May 17 or submitted your information to the IRS to receive economic stimulus checks and your family or financial information has not changed, you do not need to take further action to receive this benefit. If you are part of a low-income family and therefore did not file taxes, but qualify for this benefit, you should sign-up to receive these benefits through the IRS portal.” — ChildTaxCredit.gov
– About the child tax credit and efforts to reach our most vulnerable families.
– “A lot of people have said to me, ‘I don’t get welfare, I don’t get cash assistance. I told them, ‘[Most] American children are eligible for this. This has nothing to do with welfare or cash assistance.’” — Dr. Lucy Marcil
– Calculate how much a family could receive beginning July 15.
– Each of your children under 6 years old could get you up to $300 a month, and each dependent aged 6 through 17 could get you up to $250 per month. And that’s just for this year alone — the other half of the child tax credit comes when you file your taxes in 2022. Dependents 18 years and older could potentially qualify for one payment after tax season next year.
Changes to Child Tax Credit and Dependent Care Credit for 2021
New Advanced Child Tax Credit and how to make this unexpected income work for you!