- Families that did not receive the first payment of the $ 3,600 child tax credit can still claim the money or apply for the aid cash.
- If you didn’t file taxes in 2019 or 2020, you may still be eligible for the credit
- The credit is $ 3,600 per year for children under 6 years of age and $ 3,000 for children 6 to 17 years of age
The Internal Revenue Service (IRS) has launched several online portals that allow families in the US to verify if they are eligible to receive the child tax credit even if they did not receive the first payment on July 15.
The portals provide the opportunity for families who did not receive the first payment of $ 300 or $ 250 on July 15 to update their status so that they can automatically receive the rest of the monthly payments.
You can still claim child tax credit payments
Most families are eligible for the credit as long as the children are US citizens, or resident aliens of the United States. Also, the children must have lived with the person claiming the credit for at least half of the previous year and must have been identified as dependents on the tax return.
President Joe Biden increased the size of the tax credit as part of his $ 1.9 trillion coronavirus relief package, as well as making it available to families without tax liability. The benefit will expire after a year, but Biden is pushing for it to extend through 2025 and ultimately become permanent, AP reported. Filed under: child tax credit payment.
What to do if you did not receive the first payment?
The IRS established a portal so that taxpayers who have not obtained the first payment can still receive the cash when they file the next tax return and choose not to receive advance payments, reported The Sun.
If you filed taxes and the IRS already has your bank account information, payments must be deposited directly into your account on the 15th of each month. The Treasury Department estimates that 35.2 million families will receive payments in July. If you did not file taxes in 2019 or 2020, you may still be eligible for the credit and can apply through this link. Filed under: child tax credit payment.
How big is the child tax credit?
The child tax credit is $ 3,600 per year for children under the age of 6 and $ 3,000 for children ages 6 to 17. But the six-month payments will be advanced monthly until the end of the year. This means that eligible families will receive $ 300 per month for each child under the age of 6 and $ 250 for each child over that age.
This is a change from last year, when the credit totaled $ 2,000 per child. Families that did not owe government income taxes were also unable to claim the credit, a restriction that Biden and Congress lifted. The Biden administration is beginning to distribute expanded child tax credit payments, giving parents an average of $ 423 this month, and payments will continue through the end of the year. Filed under: child tax credit payment.
Are there limits on who can apply?
Payments begin to phase out with income of $ 75,000 for individuals, $ 112,500 for heads of household, and $ 150,000 for married couples. Higher-income families with incomes of $ 200,000 for individuals and $ 400,000 for married couples can still receive the previous credit of $ 2,000.
Advocates say monthly payments can help smooth out an impoverished family’s income, making it easier for them to budget and less dependent on high-interest lenders. Filed under: child tax credit payment.
Republicans believe the payments will make it difficult to get back to work
Florida Republican Sen. Marco Rubio, who successfully defended the credit increase in 2017, said the Democrats’ plans will turn the benefits into an “anti-work welfare check” because almost all families can now qualify for the pay regardless of whether the parents have a job.
“Biden’s plan not only abandons incentives for marriage and requirements for work, but it will also destroy the child support compliance system as we know it by sending cash payments to single parents without guaranteeing that child support orders are established, ”Rubio said in a statement Wednesday.
Administration official says that credit does not discourage work
An administration official disputed those claims. Estimates from the Treasury Department indicate that 97% of tax credit recipients have wages or self-employment income, while the other 3% are grandparents or have health problems.
The official, who requested anonymity to discuss the internal analyzes, noted that the credit begins to be eliminated at $ 150,000 for joint taxpayers, so there is no disincentive for the poor to work because a job would simply give them more income.
“The most progressive change in the tax code of the United States”
Colorado Democratic Senator Michael Bennet said the problem is one of inequality. He said economic growth has benefited the top 10% of the earners in recent decades, as families struggle with rising costs for housing, child care and health care.
He said his voters in Colorado are concerned that their children are poorer than previous generations and that requires expanding the child tax credit. “This is the most progressive change in the tax code in the United States,” Bennet told reporters.
A typical family spends $ 233,610 to raise a child from birth to 17 years old
Parenting is an expensive business. The Department of Agriculture estimated in 2017, the last year it published such a report, that a typical family spends $ 233,610 to raise a child from birth to 17 years old.
But the richest children invest much more in their education and upbringing, while the poorest children face a constant disadvantage. Families in the top third of income spend about $ 10,000 more per year per child than families in the bottom third.
Child tax credit is a source of relief
The child tax credit was created in 1997 to be a source of relief, but it also became a driver of economic and racial inequality, as only parents who owed federal government taxes could qualify for its full payment.
Academic research in 2020 found that about three-quarters of white and Asian children were eligible for the full credit, but only about half of black and Hispanic children qualified.
Mother of 4 received a check for $ 1,000
Tamika Daniel, a 35-year-old mother of four, received the first payment of $ 1,000 from the child tax credit check into her bank account when the first payment of $ 1,000. Daniel didn’t even know the tax credit existed until President Joe Biden extended it for a year as part of the $ 1.9 trillion coronavirus relief package that was approved in March.
Daniel was out of work for almost a decade because his oldest son is autistic and he needed it. So he made ends meet with the Social Security payments. And he had to live in Fairfield Courts, a public housing project that ends at Interstate 64 as the highway runs through Richmond, Virginia’s capital.
“Arrive just in time”
But the extra $ 1,000 a month over the next year could change the life of Daniel, who now works as a community organizer for a nonprofit in Richmond.
The child tax credit check will help the mother provide a security deposit on a new apartment. “Actually, it’s just in time,” he said. “We have a lot to do. This definitely helps to ease the burden. ”
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