OHIO – A check may have hit your account today and five more could be on the way.
This tax credit payment is different than many before, these payments are an advance on next year’s child tax credit, and you can choose to get this money now or after you file your taxes in February.
Tax experts say that if you usually owe money at the end of the year taking the credit now may make your payment even higher at the end of the year.
The American Rescue Plan expanded the Child Tax Credit for 2021 to get more help to more families. The credit increased from $2,000 per child in 2020 to $3,600 for each child under age 6. For each child ages 6 to 16, it’s increased from $2,000 to $3,000. It also makes 17-year-olds eligible for the $3,000 credit. To get money to families sooner, the IRS is sending out half of the 2021 Child Tax Credit this year in monthly payments.
Experts have projected the American Rescue Plan will lift more than five million children out of poverty this year, cutting child poverty by more than half – and the expanded Child Tax Credit is the single largest contributor to this historic reduction. Prior to the American Rescue Plan, lower-income families often received a smaller Child Tax Credit than families with higher earnings because the tax credit was only partially refundable.
For more info click here: https://home.treasury.gov/news/press-releases/jy0274