NEW $300 Incentive Checks will go to millions of Americans in three days, so eligible families should make sure they’re signed up to pay child tax credits.
Eligible families can expect the fifth installments of the extended child tax credit payments to arrive in their bank accounts on Monday.
After the November 15 payment, parents can expect a final monthly payment in December.
In 2022, families will receive the remainder of their Child Rebate benefit as part of their 2021 tax return.
Monthly payments will stop in December unless lawmakers decide to expand the expanded program.
The goal of the bill – which was signed by Joe Biden in March – is to help families make ends meet and get the US economy back on track after Covid.
Before the expansion, most taxpayers could have cut their federal income taxes by up to $2,000 per child.
However, under the new law, families can receive an increased tax break of $3,000 for each child ages six to 17 for tax year 2021 only.
While you can get $3,600 for each child under the age of six.
In addition, those with dependents between the ages of 18 and 24 who are enrolled full-time in college can receive $500 each.
Half of the credit was sent in the form of monthly checks for up to $300 for each eligible child under the age of six and $250 for each child between the ages of six and 17.
The maximum credit is available to taxpayers with an adjusted adjusted gross income (AGI) of:
- $75,000 or less for singles
- $112,500 or less for heads of household
- $150,000 or less for married couples filing joint returns and qualified widows and widowers
At this point, the future of the expanded Child Tax Credit is unclear.
As lawmakers work to cut President Biden’s infrastructure bill, some are in favor of limiting the extension of the expanded tax credit.
Biden’s original $3.5 trillion proposal would extend the expanded child tax credit through 2025.