On Saturday, the Senate voted to pass the $1.9 trillion American Rescue Plan Act, which includes provisions that increase the child tax credit to $3,000 per child ages 6 to 17 and $3,600 annually for children under 6 for the tax year 2021.
And Americans with children under 18 may start receiving a portion of the new credit as early as this summer.
Under Saturday’s legislation, the IRS could start providing advances on the 2021 credit through periodic payments of $250 for school-aged children starting as early as July, depending on what the Treasury Department determines is workable. Under the proposed schedule, which could be as frequent as monthly, families could receive nearly half of their total child tax credit this year and then claim the remaining amount on their 2021 tax returns.
“This plan gives those families who are struggling the most the help and the breathing room they need to get through this moment,” President Joe Biden said in a statement Saturday.
The new enhanced benefits, which specifically cover teens who are 17 for the first time, are income-based and would start to phase out for individuals earning more than $75,000 a year or $150,000 for those married filing jointly.
From there, the credit would be reduced by $50 for every additional $1,000 of adjusted gross income earned. That means the $3,000 credit provided to parents of children aged 6 to 17 would be phased out completely for individuals earning $95,000 and those making $170,000 and filing jointly.
Families that are ineligible for the new $3,000 credit due to earning higher adjusted gross incomes would still be able to claim the $2,000 per child credit which is available to those making up to $200,000 ($400,000 for married couples filing jointly).
The Covid-19 relief package would also make the benefit fully refundable. Under the current child tax credit, if taxpayers’ credits exceed their taxes owed, they only can get up to $1,400 as a refund. But under the new rules, they could receive the full $3,000 or $3,600 as a refund, depending on the child’s age.
He looks out for us, he advocates for us, and he helps those who truly need it.
i hope it wont hurt the economy too much with inflation
Don’t take the money!!!1! This is a TRICK by the COMMUNIST DEMOCRATS to shove SOCIALISM down our throats by providing financial SUPPORT to FAMILIES, especially those with MANY CHILDREN!!
Today, child tax credits, tomorrow BREAD LINES!!!
/s
How dare democrats provide financial support for families, it’s almost like they’re trying to be kind and empathetic towards American citizens.
Socialists try to bamboozle people with talk of “free money” as if it comes out of nowhere, with no cost. That money is taxed from you to line the pockets of the politicians, and to give them power over you. The “free” money you get back is a tiny fraction of the taxes paid into big brother government, which then regulates your lives telling you now you must live, in order to get the money. It is pure foolishness to think anything in life is “free” (except for suffering. You can have all the suffering you want free, because even… Read more »
It’s a shame Republicans in Congress didn’t vote in favor of this helpful stimulus plan.
The hardworking dual income families are getting missing out again. But, we will get stuck with the bill. Even with Trumps tax reforms, those in the middle did not benefit.
yay Biden finally a president that cares for us
So apparently you’ve forgotten all about the stimulus during Trump’s term. As well as the various other good things he did for us Jews specifically. Now why is that?
Why worry about inflation when you make nothing and have $0 as your account balance?
This is how I feel about this. As an American essential worker I BH don’t pay income tax, as the simple reason is I don’t make enough, & as they say “uncle sam” helds our tax for us. & we get some money back @ end of the year. What if we make more then the exceeds amount of our income? Very simple we owe the government some $. The fact that we’re making more then ex amount of $ per year, is, very simple “we do not get the stimulus check” The fact that you can make less per… Read more »