Child tax credit to hit bank accounts this week
ST. JOSEPH COUNTY, Ind. – The Child Tax Credit is not a new concept, the difference this year is eligible parents can claim up to $3.600 per child, and most families will get the money directly sent to them.
Couples making less than $150,000 a year, with kids, will start to see money in their bank accounts starting Thursday. It is all part of the latest COVID stimulus package, a $1.9 trillion spending bill.
The enhanced credit will be sent to about 39 million households and covers nearly 88 percent of children. Eligible parents will receive $300 a month for each child under six years old and $250 for children ages six to 17. Unlike previous years, families don’t have to wait until they file their taxes to get the credit. Payments will be automatic every month through direct deposit, checks, or debit cards. Based on the 2019 or 2020 federal income tax returns.
The American Rescue Plan was implemented to help reduce child hunger in the United States. An assistant professor of economics at the Indiana University of South Bend says the program will likely have both long and short-term effects.
“If we look at the situation where we are in, some families definitely need help. The issue is that whenever we pass programs on such a big scale for an entire country, like the U.S, which is huge, it's very hard to have a good program that works fairly in a sense for everyone,” Klajdi Bregu said.
The direct payments will be made on the 15th of each month through December. You can go here for more information.