Politics
Child tax credit: Here’s how to get one payment instead of monthly checks as 88% of Americans enrolled to get cash
THE TAX man taketh and giveth too.
Starting this summer, the IRS is offering families a chance to pocket $250 or $300 a month or dangling a one-time payment of $3,000 or $3,600 in 2022, as part of the Child Tax Credit rollout.
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The IRS is giving qualifying families a chance to receive monthly payments or opt for a lump sum check as part of the family child tax credits[/caption]
The financial boost is part of President Biden’s effort to recover from the economic strain brought on by Covid-19[/caption]
By mid-July, the IRS will go live with two web portals to give parents and guardians the chance to select whether they want a monthly payout or a larger one-time chunk come 2022, the IRS detailed on their website.
Qualifying families can collect $3,000 “per qualifying child between the ages of 6 and 17 at the end of 2021,” the IRS states.
The higher $3,600 can be had if the child is “under age 6 at the end of 2021.”
The amount is a marked hike from the “prior law” which amounted to $2,000 per qualifying kid under 17-years-old by the end of 2020.
The effort will further buoy American bank accounts for to cover basic necessities and rising overheads, buy many Americans are still waiting on Uncle Sam for their first round of stimulus checks.
Families will be required to update their monthly or lump sum preferences and can do so before the portals are operational by July 1, according to CNET.
Two IRS portals are expected to go live in July to help families update their information and choose whether they want monthly payments or a lump sum at the end of the year.[/caption]
In fact, the publication confirmed that one of the Child Tax Credit portals will let parents effectively opt out of monthly payments if they prefer to hold off and wait for the one-time fatter check next year.
The IRS calculated that 88 percent of US families with children will be enrolled into the program to receive the monthly payments .
The onus to switch the payment is up to the parent or guardian.
The influx of greenbacks comes after President Joe Biden’s American Rescue Plan passed through congress upping the maximum child tax credit substantially and give the country a financial boost in the wake of the Covid-19 pandemic.
Roughly 39 million households will begin receiving their child tax credit checks on or after July 15th[/caption]
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The law also made it easier for families to begin collecting their monies during the final six months of this year, according to KRON.
There will be “roughly 39 million households” who will begin receiving their child tax credit checks on or after July 15th, “without any further action required,” according to an IRS press release from last month.
It added: “Households covering more than 65 million children will receive the monthly CTC payments through direct deposit, paper check, or debit cards.”
