Families With Children Prepare for Greenbacks [PHIL-OSOPHY]
I'm in favor of supporting families with children, as long as the money assists with their fostering. The little ones are our successors, so why shouldn't we stick up for our future Americans? Our country gives plenty of allowances to wealthy corporations, so handing mom and dad a financial set of helping hands is alright by me.
That said, the Treasury Department said they'll begin paying hundreds of dollars a month to parents on July 15 as it rolls out a refundable child tax credit that was created as part of the economic relief legislation Congress passed in March.
Roughly 39 million households with children will begin receiving monthly payments with no strings attached. The maximum child tax credit was just increased to $3,600 for children under six years old, and to $3,000 per child for kids between ages six and 17.
Instead of giving families the credit in one lump sum when they file their taxes, this tax credit will be paid out in monthly installments. The money will be split with half to be paid every month from July to December 2021, and the other half will be paid through the tax refund in 2022. Families that qualify will get payments of up to $300 per month and families with older children can receive up to $250 per month.
I hope you paid your 2020 taxes. You still have until midnight on May 17 to guarantee you receive your child credit payments, because by doing this, you make sure the IRS knows you qualify for the child tax credit and the government can calculate the correct amount. This goes for non-filers too, those who normally aren't required to file a tax return. This is really important. You need to file a tax return even if you don't have the income levels, because the IRS needs that information. The credit goes away once a child reaches the age of 18.
As with the stimulus payments, the child tax credit money will be distributed by the IRS through direct deposit, checks or debit cards. I'll keep you posted on it all.
Phil Paleologos is the host of The Phil Paleologos Show on 1420 WBSM New Bedford. He can be heard weekdays from 6 a.m. to 10 a.m. Contact him at email@example.com and follow him on Twitter @PhilPaleologos. The opinions expressed in this commentary are solely those of the author.