JACKSONVILLE, Fla. – Aside from the direct checks, the landmark $1.9 trillion COVID-19 relief bill also expands the child tax credit which could provide families hundreds of dollars a month per child.
Here’s how it works right now before the stimulus bill gets signed into law Friday:
- It provides families $2,000 in tax credit each year, per child, if you meet the income requirement
- To qualify, you had to have earned at least $2,500 of income, but not more than $200,000 or $400,000 for couples
- Your child would need to be under 16 and have a social security number
- The credit is also refundable, meaning if your tax bill is $0, you could get up to $1,500 per child from the IRS in your refund.
Under the new stimulus:
- Your child must be under 18.
- You get $3,000 for each child ages 6-through 17 and $3,600 for each child under 6
- And a big change to how this money is handed out. Rather than waiting until you file your taxes and get this refund next year, the IRS will pay families in monthly installments next year
- That means $250 a month for each child aged 6-though-17 and $300 a month for each child under 6
So, what do you need to do?
First, make sure you file for that child tax credit this tax season.
Second, keep an eye out for a new, online portal from the IRS. It will allow you to decline the payments if you don’t want them and it will let you directly keep the IRS up to date on your situation throughout the next year.
If you have more children, or get divorced, or have a change in income, you’ll be able to let the service know through that portal.