unSplash
July 8, 2021 By Ryan Songalia
Eligible parents will begin receiving a monthly payment starting on July 15 from the federal government.
The payment comes in the form of an early child tax credit, which was included as part of the American Rescue Plan that was signed into law by President Joe Biden on March 11.
The tax credit provides up to $300 per child per month in cash payments for children under age 6, and up to $250 per month per child for children from age 6 to 17. The amounts will be deposited into recipients’ bank accounts monthly or sent out in the form of a monthly check from July through December.
The total paid via the early child tax credit is $1,800 per child under age 6 and $1,500 per child from age 6 to 17 years of age.
Single parents making less than $112,500 per year are eligible for the full amount, as are couples making under $150,000 per year. The credit shrinks as incomes go above these thresholds.
The early child tax credit will also be matched when parents file their 2021 income tax return.
For instance, under the American Rescue Plan Act the child tax credit maximum was raised to $3,600 for each child under age 6 and up to $3,000 a year for each child from age 6 to 17. Half is being sent out over the course of the next six months in the form of the early tax credit.
Legislators representing Queens have been reaching out to constituents to make sure they are aware of the program and to ensure they get the full benefit. They have also been pointing out the need for such payments given the New York economy.
“Hard-working families in our borough, and throughout New York, still need help from the impact of the pandemic, and these advance Child Tax Credit payments will provide critical and needed assistance for expenses as we move forward with our recovery,” said Rep. Grace Meng in a statement.
Meng, who represents the 6th congressional district and has been doing outreach, estimates that the credits apply to 82 percent of all children in her district – or 120,500 children. About 38,500 households in her district could get an average total benefit of $2,400.
Congresswomen Alexandria Ocasio-Cortez and Nydia Velazquez have also released information on social media to remind the public about the tax credit.
No additional action is needed to receive the payments for parents who have filed tax returns in the last two years.
Parents who have not filed returns can go online and sign up for the credit. They can also check their eligibility.
The IRS encourages people to sign up for direct deposit in order to receive the payments sooner, and to prevent the payments from being lost or stolen.
Featured Events
