The Enhanced Child Tax Credit Will Hit Your Bank Account on July 15

The Enhanced Child Tax Credit (CTC) is about to drive your home finances more flexible if you have children to the age of 17. At least 36 million homes will be impacted by this Biden administration’s aid. From July 15, eligible bank accounts will see a deposit, courtesy of Uncle Sam.

Even those who didn’t file their tax return in 2019 and 2020 still can get the money from IRS if they prepare their tax file with IRS, and IRS will assist those who need help. Follow this link to get the free prep, https://www.irs.gov/pub/irs-pdf/p5532.pdf

Most of the parents with children under the age of 6 will receive $3,600 per child in total. The parents will get $300 a month for each child under 6, and $250 a month for each child between ages 6 – 17 respectively from July to December. They can then claim the rest of the amount on their tax return next year.

This enhanced Child Tax Credit is intended to be a big help to the lower to middle-class income families.

Under the American Rescue Plan, this enhanced CTC will give $3,600 for each child under age 6 and $3,000 for each child between ages 6 to 17.  The original CTC excluded those who turned into17 and was limited to $2,000 per child. Basically, under the Biden administration, at least $1,000 to $1,600 increase is possible from the original CTC.

Aside from having children who are 17 or younger as of December 31, 2021, families will only qualify for the expanded credit if they fall below certain income thresholds:

• $75,000 or less for single taxpayers
• $112,500 or less for heads of household
• $150,000 or less for married couples filing a joint return and qualified widows and widowers

The IRS on Tuesday said it had created a website that will allow people to check whether they qualify for the benefit, called the Child Tax Credit Eligibility Assistant. To check whether you’ll receive the payments, you’ll need either your 2020 or 2019 tax return (if you haven’t yet filed for 2020). The IRS said if people don’t have a copy of their return, they may be able to use an estimate based on their W-2s or 1099s to determine eligibility.

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