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On September 15, millions of families across the U.S. will receive a third Child Tax credit payment, CNN reported. If you’ve filed your 2019 and 2020 tax returns, no need to worry. Most parents will receive their enhanced payment automatically, as long as the IRS has your information on file. The report states that families could expect to receive up to $300 for each child up to age six and $250 for each child between the ages of six and 17. Back in March, the Biden administration tweaked the expanded child tax credit bill as a part of the Democrats’ $1.9 trillion relief package.
Families who are eligible to receive the enhanced Child Tax credit could receive a total of up to $3,600 for each child under six and up to $3000 for children six to 17, but only for 2021. This expanded bill has increased the tax credit from its original stipulation of $2000 for each child up to 12 months of age.
It’s important to note that only half of the total credit amount will be paid monthly—on the 15th to be exact—but you can claim the other half when you file your 2021 income tax return, the IRS notes.
Wondering if you’re eligible?
The full enhanced credit is available for the head of household earning up to $122,500 a year, CNN adds. If joint filers make up to $150,000 they, too, are eligible, but this is where the cut-off begins.
Family’s earning over the eligibility amount could potentially receive up to $2000 per child. Then the credit begins to phase out for single parents earning more than $200,000 or for married couples with incomes totaling above $400,000.
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Currently, payments have only been extended through 2021, but according to the Urban Insitute, the Biden Administration has discussed potentially stretching the provision to 2025. The site notes that the Child Tax credit could potentially help cut down on child poverty by “5.9 percent” this year alone.
“That means 4.3 million fewer children would be in poverty in a typical year, representing over a 40 percent decrease in child poverty,” the report adds.
