Stimulus check update – Parents to get up to $3,600 per child with tax credits starting in July

STARTING JULY, parents will receive up to $3,600 per child as tax credit.

According to CNBC, the Internal Revenue Service (IRS) Commissioner Charles Rettig confirmed that the IRS is ready to send out the checks this summer.

Those payments will be sent out per the expanded child tax credit that was combined with the American Rescue Plan signed last March.

“if we [IRS] end up not being on track for some unforeseen situation we will advise you and the committee,” Rettig told  Sen. Sherrod Brown, a Democrat from Ohio and ranking member of the Senate Banking Committee.

The new tax credit— which is meant to help parents pay down debts and bills— will be sent out through monthly payments from July to December.

If your household was already qualified for the $,1400 stimulus checks, you will receive half of the tax credit for now and will get the other half as refundable when you file your 2021 taxes.

Each household is set to receive between $3,000 and $3,600 depending on each child’s age. 

If you are part of a couple who is making $150,000 or if you are a single parent who is making under $75,000 a year, you are eligible to receive a $250 monthly payment for each of your children whose ages range between six years old and 17 years old.

But if your child is under six years old, you are set to receive a $300 monthly payment.

However, those earning over $75,000 or $150,000 will not receive full payments but will still qualify for some support under the expansion of the child tax credit, according to Yahoo Finance.

The IRS has been requested— as per the child tax credit expansion—to set an online portal where families can update their family information, including the number of qualifying children in case of a newborn. 

If the IRS didn’t receive that update through the portal, you will claim the $3,000 or $3,600 credit for your new child when you file your 2021 taxes.

Retting’s tone changed after he previously said that these checks might be delayed because the IRS is overwhelmed with this year’s tax season and the $1,400 stimulus money. 

“I don’t have the resources to devote to that portal until the filing season ends," Rettig previously told the House Ways and Means Committee, adding that it “might be a challenge” to send out monthly child tax credit payments. 

Before the child tax credit expansion, families and individuals would claim the credit for only as much as $2,000 per child, and only $1,400 was refundable.

People only received that refund if they earned at least $2,500 worth of income, but now there is no limit on the amount of refund and Americans don’t have to earn a certain amount of income to get this refund, according to CNBC.

One million plus-up payments worth over $2million are being sent out this week, according to CNET.

New stimulus checks and plus-up payments will continue to be sent out on a weekly basis as the IRS processes 2020 tax forms and reassess payments.

Social Security Income (SSI) recipients began to receive their third stimulus checks earlier this month. Around four million checks were scheduled to be sent out with a total value exceeding 10billion.

The checks will be sent out to around 30million Social Security beneficiaries who are not required to file taxes.

People began receiving their stimulus checks after President Joe Biden signed the Covid-19 relief bill into law on March 11.

A fourth stimulus check is looking much more likely as the American Rescue Plan looks to other ways to help Americans struggling most during the pandemic.

    Source: Read Full Article

    You May Also Like