The House of Representatives Democratic proposal increases the credit to $ 3, 600 per child under 6 years, and $ 3, 000 per child up to 17 years
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A Democratic proposal to extend the child tax credit for one year could grant qualifying families up to $ 300 per child per month .
But like all direct payments made by the government as part of Covid aid , some wonder if the aid will be too much or too little.
The expansion of the tax credit for children aims to reduce child poverty . President Joe Biden’s plan could help cut the current rate in half.
The child tax credit helps parents who are below certain thresholds of income to financially support their children .
The child tax credit is $ 2, 000 per child for those earning up to $ 300, if they are married and $ 200, 000 if they are single.
Because it is a tax credit, it allows parents to reduce their tax liability. This should not be confused with a deduction, which reduces adjusted gross income .
The House of Representatives Democratic Proposal increases the credit to $ 3, 600 per child under 6 years, and $ 3, 000 per child up to 17 years.
The bill would make families can choose to receive monthly payments , rather than having to wait for a lump sum at the end of the year.
Families can receive up to $ 300 per month per child under 6 years and $ 250 per month per child of 6 to 17 years .
Eligibility for fuller payments would be based on income. Single parents with an adjusted gross income of up to $ 75, 000, heads of households with up to $ 112, 500 and married couples filing jointly with up to $ 150, 000 would qualify.
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