Families will begin receiving Tax Credits for their children
by carlos matías
More than 39 million families will begin receiving tax credits for their children on Thursday, July 15, benefiting more than 65 million children, representing 88% of the U.S. children. Payments will be made monthly through December. They will arrive in cash, checks, direct deposit, or as debit cards.
According to the Internal Revenue Service (IRS), these monthly payments will be $300 for each child under the age of six and $250 for each child over this age. This includes children who turn 17 in 2021.
On the 15th of each month, or the closest date if the 15th falls on a Holiday or the weekend, these payments will be made in cash or by direct deposit in bank accounts in 80% of the cases.
Lower payments will be made to parents earning $75,000 (or couples earning $150,000 between them). If they exceed these amounts, they may be excluded.
This tax assistance program is one of Joe Biden’s most important measures. The United States is one of the richest countries in the world but has one of the highest levels of child poverty.
The American Recovery Plan Act (ARPA) determines that the credit is fully refundable; that is, taxpayers with no earned income can benefit, and they can receive part of their credit before filing their 2021 tax return.
Those who have their main home in the United States for more than half of the year will receive these payments. The amounts are calculated based on 2020 tax returns, or 2019 tax returns if 2020 returns have not been filed. The IRS urges parents to file their 2020 returns as soon as possible to ensure they receive the appropriate CTC (Child Tax Credit) amount, as well as for any other tax credits, including the Earned Income Tax Credit (EITC).
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