weeLove: Financial Tax Relief for Working Families
Got kids? Get this tax benefit…
The 411 on the Child Tax Credit
This *isn’t* a newsflash: life with kids is expensive! From gadgets to gear, clothing to food, toys to activities, there’s always something to “add to cart” (#amiright?). And as if parenthood wasn’t hard work to begin with…a pandemic + economic challenges have been thrown into the mix. Good news: the Child Tax Credit, part of the American Rescue Plan, is supporting families raising children by distributing much needed tax relief.
What’s the maximum tax relief payment? The full benefit of the Child Tax Credit is $300 per month per child under age 6 and $250 per child ages 6 to 17. (The grand total = $3,600 for each child under 6 years old and $3,000 for each child between 6 and 17 years old.)
Do I need to do anything to get these payments? If you filed your taxes in 2020 or 2019, or used the IRS Non-Filer Portal to get a stimulus check last year, you don’t need to do anything to start receiving automatic payments. (Yay! That’s one less thing to add to your to-do list!) If you didn’t file taxes in the past 2 years—no prob—use the IRS Non-Filer tool.
Will I get the full amount? Single parents making less than $112,500 or married couples making less than $150,000—with children under age 18 who will live with you for more than half of 2021—are likely eligible for the full benefit.
Cool! So, when is this coming my way? The IRS will start sending automatic monthly payments by direct deposit or check on July 15, 2021. Families will receive half of the credit as monthly payments now and the other half when taxes are filed next year.