The first monthly payment of thenewly expanded child tax creditwill start hitting bank accounts on Thursday, officials said.
Families who want to check if they’re enrolled — or who want to unenroll or update their account information — can do so at theChild Tax Credit Update Portal.
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The plan upped the maximum child tax credit to $3,600 for kids under 6, and $3,000 per child for kids ages 6 to 17.
Biden said in astatementthat the tax relief checks will come automatically for 90 percent of eligible families.
“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,” Biden said. “For working families with children, this tax cut sends a clear message: help is here.”
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Payments are normally given annually as tax refunds, but will now be distributed monthly. Tax credits are amounts that taxpayers can subtract directly from any taxes owed, and the child tax credit has traditionally given eligible parents a $2,000 annual credit for each child under 17 years old.
Thenew planincreases not only the amount families can receive and the age limit of eligible children, but it also waives the $2,500 earning requirement for parents or caregivers, so that those who are not employed can still benefit.
Those now eligible for the expanded tax credit include single-filers making up to $75,000 annually, heads of household making $112,500 annually and married couples filing jointly who make $150,000 annually.
After that income cutoff, the expanded credit begins to phase out in increments as income increases. Those making up to $200,000 remain eligible for the original $2,000 credit.
source: people.com
