In a few weeks, millions of parents will begin receiving monthly checks from the IRS. It’s part of the expanded Child Tax Credit.
“From July, starting July 15th to December it will be an advance towards next year’s tax returns, " said Janice Johnson, J’s Tax Services.
President Joe Biden’s American Rescue Plan expanded the Child Tax Credit from $2,000.00 per child to $3600.00 per child under six years old or $3,000.00 per child six and older.
“The advance is based on the tax return that was supposed to be done in 2019, 2020,” said Johnson.
The credit is now fully refundable unlike previous years, and people may begin receiving payments on July 15th.
“Whatever they were going to receive for 2022, they will now receive half of it, " said Johnson.
You do have the option to opt-out of the monthly payments. Instead, you would get the full amount when you file your taxes next year.
If you haven’t filed taxes in a while and did not receive stimulus checks you may still qualify. Just register using the IRS non-filer sign-up tool.
While supporters of the expanded child tax credit said it could be a game-changer when it comes to fighting poverty, critics see it differently.
Some argue it could make more people look at it not as a credit but as monthly income and push them to expect a government handout.
The expanded credit is only in place for one year, but Democrats hope to extend it or make it permanent.
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