Monthly child tax credit payments begin Thursday. Here is what you need to know.
Families across the United States will begin receiving a monthly child tax credit payment on Thursday as part of the US bailout, a move according to Representative John Yarmuth that will greatly help poor children in Kentucky.
“With just one change to our tax code, we are lifting thousands of Louisville children and their families out of poverty and halving the nation’s poverty rate,” Yarmuth, the Commonwealth’s only Democrat in Congress, said on Wednesday. at a press conference promoting the tax credit.
It is estimated that 146,000 Louisville children – over 86% of the city’s children – will benefit, he said during his announcement to the Louisville Urban League.
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“Put simply, we are preparing children and parents for success, and it is time for them to be the priority of our tax code,” he said.
More than 46,000 Louisville families will receive up to $ 300 per month per child for the remainder of 2021, Yarmuth said. They will receive the other half of their child tax credit funds after they file their income tax return next year.
Here’s what families need to know about this new perk:
Am I eligible?
Families with one or more children under the age of 18 are entitled to the full amount of the child tax credit this year if their income is less than:
- $ 75,000 for individuals filing their taxes alone
- $ 112,500 for people who present themselves as the head of the family, such as single parents
- $ 150,000 for a married couple jointly filing taxes
People who earn higher incomes may still be eligible for a lower child tax credit, depending on how much they earn.
Families will receive up to $ 300 per month for each child up to age 5 and $ 250 per month for children ages 6 to 17.
What do I have to do to get paid?
Most eligible families don’t have to do anything to make sure they receive the monthly tax credit money, Yarmuth said on Wednesday.
“If you have filed income tax returns for 2019 or 2020, or if you have signed up to receive a stimulus check from the Internal Revenue Service, you will automatically receive this tax break,” he said. “You don’t need to register or take any action.”
The small number of families who do not meet any of these criteria must register to ensure they receive the monthly payments.
They can do this online at www.childtaxcredit.gov.
How is this credit different?
The U.S. government has given families a child tax credit for years, but the U.S. bailout – which Congressional Democrats passed without Republican support this year – made some major changes.
First: It temporarily increased the amount of the child tax credit from $ 2,000 to $ 3,600 per child under 6 and from $ 2,000 to $ 3,000 for children aged 6 to 17.
Second: Instead of giving the tax credit in a lump sum after people filed their taxes like the government usually does, the US bailout allowed families to receive half of that money in monthly installments. , from Thursday until the end of 2021.
The other half will be provided once they file their taxes next year.
If you get your tax refunds through direct deposit from the IRS, the money should show up in your bank account on the 15th of every month, according to the White House. Otherwise, you should receive a check in the mail.
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As chairman of the House Budget Committee, Yarmuth helped lead the US bailout through Congress.
“And to know that for a provision tomorrow, 46,000 Louisville families will benefit directly – to know that their lives will be easier, to know that they will have a chance to move forward instead of just trying to join. both ends at the end of the month … “he said on Wednesday. “Well, frankly, that’s just awesome.”
He said he hopes Congress will eventually pass legislation that will make this advanced child tax credit a long-term benefit instead of just a one-year thing.
What impact will this have?
Jason Bailey, executive director of the Kentucky Center for Economic Policy, said this expanded child tax credit “will raise a phenomenal 44% of Kentucky children above the poverty line.”
“You know, the easiest way to become poor in this country and in this state is just to be born,” he said. “Thirty percent of Kentuckians who are poor are children, and many more who fall below the poverty line are the parents or guardians of children.”
Alongside Yarmuth, Louisville Urban League President and CEO Sadiqa Reynolds highlighted how essential these monthly payments will be for the families her organization works with.
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Reynolds explained how parents have struggled to pay rent and have been overwhelmed with the costs of child care and commuting to work, especially during the pandemic.
“Last Sunday night in this community, an Uber from Floyd Street to Eighth Street was $ 20. Money matters,” she said. “It’s going to make a difference. In the richest country in the world, this is how we should spend our money.”
Jazzilin Williams, a local mother, said she and her husband suffered a financial blow during the pandemic as one of them had to stay home with her three children when school and daycare in person took been closed.
“I just want to say that I think the child tax credit is going to help me and my family tremendously,” she said Wednesday. “The pandemic – I’ve worked all along, but I’ve had to use my own savings, and right now this child tax credit will help me get back to that savings …”
Contact reporter Morgan Watkins: 502-582-4502; [email protected]; Twitter: @ morganwatkins26.