What to know about child tax credits ahead of July 15
ELMIRA, N.Y. (WETM) — The Biden Administration's monthly child tax credit payments will start hitting bank accounts on July 15. According to the IRS, those who are eligible will be able to get up to half of the total credit in advance monthly payments.
Monthly child tax credit payments will go out to approximately 65 million kids. The child tax credit was established as a part of the American Rescue Plan signed into law in March.
"I think it's beneficial for parents. We've had so many parents struggling for so long. It'll help them to expand, to look for better housing, maybe to get a better car, get their children food that is necessary for them," said Renee Hawk-Brent.
Families will get monthly payments of up to 300 dollars for each child 6 years old and under and up to $250 for each child 6 to 18 years old.
"The thing that people do have to worry about or think about is if their 2020 income was less than what it may be in 2021. They may have to pay some of this money back," said Craig Petrella, a certified public accountant.
The plan raises the maximum payments a family can receive per child from $2,000 to $3,600. The IRS has started sending letters to more than 36 million eligible American families.
The child tax credits will be sent to eligible households either by direct deposit or paper check; however, they plan on sending out payments via debit card in the future.
"I think it's something to start with and to see how it goes from there," said Hawk-Brent.