When the American Rescue Plan passed, it included an increase to the child tax credit to $3,000 per child over the age of 6 for a year. For children under the age of 6, the credit will be $3,600 per child. This advanced tax credit could be a game-changer for many families in the United States. Poverty experts estimate this could lift millions of children out of poverty and cut the child poverty rate by 40% or more.
“This is not a permanent change, but I’m hoping that there’ll be so much support and people will see the benefits of it, that we’re going to be able to extend it and eventually make it permanent.” –Sen. Debbie Stabenow, (D-MI)
However, since the passage of the tax credit increases, there has been some confusion about the rollout, who is eligible, and for how much of the credit. To sign up, eligible Americans can go to childtaxcredit.gov or go to the Internal Revenue Service’s portal and give your information.
Listen: Sen. Debbie Stabenow discusses the child tax credit.
Sen. Debbie Stabenow (D-MI) says if someone received a $1,400 or any other check, the IRS already has the needed information, and starting next week, they will receive their once-a-month tax relief automatically.
Stabenow says the payments will come in monthly until the rest of the money comes when someone pays their taxes. She says there is a possibility of adjustments during taxes. An adjustment will happen when a child reaches 18, or if a two-parent household reaches a combined income of $150,000 or a single parent reaches $112,500.
While the American Rescue Plan only temporarily increased the child tax credit, Stabenow expressed hope to make the enhanced benefit the new normal. “This is not a permanent change, but I’m hoping that there’ll be so much support and people will see the benefits of it, that we’re going to be able to extend it and eventually make it permanent,” she says.
Web story written by Dan Netter