Photo: Mario Tama / Getty Images
East 15 in July, parents and guardians with minors from all over the country began to receive the first payment of the tax credit for children .
Families with children under seventeen years of age are entitled to receive the credit. However, the value of the credit changes depending on the age of the child.
For children under six years of age, the total value of the credit is $ 3, 600 dollars, with a monthly payment of $ 300 dollars until December . Families with children between the ages of six and seventeen will receive a $ 3 credit, dollars, with monthly payments of $ 250 Dollars.
The Internal Revenue Service (IRS) determines the eligibility and the amount that began to be sent based on the tax return of 2020 of the taxpayers . The IRS hopes that those who are not required to file a tax return will be able to sign up so that the agency can provide them with advance credits.
If you wish You can sign up to receive payments through the IRS Child Tax Credits for Non-Filers Enrollment Tool .
Related: 35. 2 million families will receive the first IRS payment of child tax credit
Changes in the child tax credit
The American Rescue Plan introduced three important changes in the Child Tax Credit .
The new changes have been recognized by the organizations defending the rights of the child, that they believe could have a considerable impact , especially in reducing the rate of child poverty.
The first refers to the age of the children who can qualify for the credit. Before the approval of the one trillion dollar stimulus plan, only children under the age of sixteen could claim the credit . Now, one more year of eligibility has been added to support families with older children. However, parents should note that may have to repay part of the payments if their child turns eighteen this year .
The second modified the way of distributing the credit, allowing the sending of advance payments of the same. Therefore, at the end of this year, half of the credit value will be sent directly to households . The rest will be sent along with the family’s tax refund next year. Before the change, . . Although some families choose to delay payments in order to receive the credit as a lump sum, this new structure helps low-income families who have difficulty making ends meet. month .
The third is the amount distributed. Before, the credit was $ 2, 000 dollars for all children, of which only $ 1, 400 were refundable. To receive the loan, a family had to have an income of at least $ 2, Dollars; this, combined with several other factors, led to the exclusion of some 27 millions of children, of which approximately half come from different minorities such as Hispanic and black communities.
You may be interested in:
- and $ 250 dollars per month