Everything Parents Should Know About Child Tax Credit

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President Joe Biden announced that he would provide a substantial tax cut to working families with children who need assistance. This will be the largest child tax credit and it is meant to give these families a bit more breathing room so they can pay the bills, put food on the table, and make ends meet.

Until now, the child tax credit stood at $3,000 for families with children between the ages of 6 and 17, while families with children under 6 received $3,600. Half of the tax cut would be paid in advance with a monthly check or direct deposit.

This year, things are different. Working families with two young children will get $7,200 and they will receive monthly payments of $600 starting in July. If you have filed your taxes in the last two years, you will receive this child tax credit automatically. This tax cut will make a huge difference for families with children, so if you’re eligible, you can benefit from the full credit.

President Joe Biden is requesting we all come together to support and bring awareness to this tax relief. The goal is to make sure all working families with children get signed up to provide significant relief and cut child poverty in half in the near future.

That’s why June 21 has become Child Tax Credit Awareness Day. A day dedicated to bringing awareness to the Child Tax Credit, how it will cut child poverty, and sharing strategies so low-income families can sign up. Across the nation, organizations and elected officials work towards this goal.

Help is available for hardworking parents who struggle to make ends meet and provide their children with security, opportunity, and dignity. If you can benefit from the Child Tax Credit, you can sign up here.

 

How Does the Child Tax Credit Provide More Help?

 

As mentioned before, the child tax credit has gone from $2,000 per child to $3,600 per child under the age of 6, and from $2,000 to $3,000 per child from ages 6 to 17. Before this, low-income families didn’t receive the same amount or didn’t receive any Child Tax Credit at all. Now, families will receive the full amount thanks to the American Rescue Plan. It’s broken up into monthly payments of $300 per child under 6 and $250 per child between 6 and 17 years old.

 

How Can I Qualify for the Child Tax Credit?

 

Almost all families with children qualify for the Child Tax Credit. However, certain income limitations apply. For instance, families who make less than $150,000 and single parents who make less than $112,500 will qualify. Families with higher incomes than that may qualify for a smaller credit or not qualify at all.

 

Is There Anything I Need to Do to Receive the Payments?

 

Most families don’t have to go through any extra steps to receive the Child Tax Credit. If you’ve filed your taxes in the last two years or if you signed up last year for stimulus checks using the Non-Filer tool from the IRS, you don’t have to do anything more and you’ll receive the payments automatically. If you didn’t do any of that, don’t worry, you can still sign up here. And you can even sign up for stimulus checks using the Non-Filer Sign-Up Tool from the IRS.

 

When Will the Payments Start Coming in?

 

If you’ve filed your taxes and you’ve provided the IRS with your bank account information, you will receive a direct deposit on July 15, 2021. After that, you can expect monthly payments on the 15th of every month. Except in August you will receive the monthly payment on the 13th because the 15th falls on a weekend. If you haven’t provided your bank account information or you don’t have a bank account, then a monthly check will be sent to the address you’ve provided to the IRS.

 

What If I Can’t Sign Up on Time? Will I Miss Out on Child Tax Credit?

 

No, you won’t. All eligible families will receive the Child Tax Credit. If you are not able to sign up on time to receive your first payment on July 15, 2021, you can sign up later and the remaining monthly payments of the year will be larger to make up for the ones you missed. If you don’t sign up this year, you will still get the full benefit when you file your tax return in 2022.

 

Will This Affect the Other Government Benefits I Receive?

 

No, signing up for the Child Tax Credit won’t affect any other government benefits you are receiving. This is not considered as income, so it will not change your Federal benefits such as Medicaid, SSDI, SSI, SNAP, Section 8, WIC, TANF, or public housing.

 

Final Words

 

As you can see, it’s not difficult to enjoy the benefits of the Child Tax Credit. If you filed your taxes in 2019 or last year, or if you used the IRS Non-Filer tool to sign up last year, then you don’t need to take any extra steps and you can expect your payment on July 15. If you haven’t, you can still sign up with the Non-Filer Sign-Up Tool from the IRS if you’re eligible.

The process is very simple and straightforward. You only need your Social Security Number and that of your spouse. You also have to provide the Social Security Number for your children. Additionally, you need a reliable mailing address so you can receive your monthly checks or you can provide your bank account information if you prefer to receive direct deposits. You will also need an e-mail address, and that’s it.

Signing up for the Child Tax Credit is super easy and most working families with children will be eligible. The whole point of this is to provide much-needed assistance and give these hardworking families a break. There are no hurdles or restrictions with this Child Tax Credit, so make sure you are signed up and enjoy the benefits.