Child tax credits to go out Thursday: What you need to know
LOUISVILLE, Ky. (WAVE) - The Internal Revenue Service will begin sending out expanded child tax credits to millions of Americans on Thursday.
The payments were part of a $1 trillion stimulus package called the American Rescue Plan, which passed in March.
This year, more families will qualify for the child tax credits, even if they have no income, and most will likely receive more money.
Individuals making up to $112,500 a year, and couples making $150,000 a year together will receive the full credit. Parents with children under six will receive up to $3,600 per child, and parents with children six and older will receive up to $3,000 per child.
Credits phase out for single parents making more than $200,000 a year and couples making more than $400,000 a year together.
The payments will be split in half, and the first half will be sent out in monthly increments beginning Thursday. Parents with children under six will receive up to $300 per month, per child until the end of 2021, and parents with children six and older will receive up to $250 monthly payments per child until the end of the year. Families will claim the second half of the child tax credit when they file their 2021 taxes.
Kentucky Rep. John Yarmuth told WAVE 3 News he sponsored the American Rescue Plan child tax credits for the children.
“If we don’t make sure we do everything possible to make sure these kids have a strong foundation with basic nutrition, with basic health care,” he said. “That’s why I think early childhood education is so important. If they don’t have that, we have no tax base 40 to 50 years from now.”
Louisville families, including Jazzilin Williams, her husband and three children will benefit. Both Williams and her husband work full-time, but once their children’s school shut down because of the pandemic, one parent had to stay home to watch them.
“Our income just depleted because we’re used to a two-family household income,” Williams said.
Williams told WAVE 3 News the credits will help replenish her savings, which she had to dip into to get by during the pandemic.
“The kids need help, the community needs help, and it’s not just our colored community either,” Williams said. “There’s a lot of children, a lot of different ethnicities that need help, and this is going to help them.”
For most families, the credits will come automatically. Parents can check if they are enrolled to receive the advance payments through an IRS Portal. Parents who have not filed a tax return recently can use the IRS non-filer tool to receive the payments.
Those who are uncertain how much money they will receive can click here to calculate their payments.
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