As part of President Joe Biden's commitment to American families, the government has just disbursed the Expanded Child Tax Credit payments beginning on Thursday, July 15th. But, there's still more than a little bit of mystery surrounding the Expanding Child Tax Credits, what they entail, and what parents do — and don't — qualify for. Let's take a look at what you can expect if you do, indeed, qualify for the Expanded Child Tax Credit.
1. How Do I Know If I Qualify for the Expanded Child Tax Credit?
If you are filing as the "head of household" on your income tax returns and make less than $112,500 as an individual (or $150,000 as a joint filer), you qualify for the Expanded Child Tax Credit. If you are considered a "low income" tax filer, your Expanded Child Tax Credit is fully refundable, as well.
2. How Much Do I Get?
The child tax credit has been increased from $2,000 to $3,000 for children over 6, and to $3,600 for children under 6. It also expands the ages of children eligible, raising the age limit from 16 to 17. "Congress directed the IRS to pay half of the new credit amount in advance monthly payments that will start hitting people’s bank accounts on July 15. The maximum monthly payments that people could receive would be $300 or $250 per child, depending on a "child’s age," reports Good Morning America.
3. When Will I Get The Money?
As many parents found out yesterday when they checked their bank accounts, the first part of the Expanded Child Tax Credit was disbursed on July 15th. Parents will see the money disbursed every month from now until the end of the year, though President Joe Biden is currently pushing to have the Expanded Child Tax Credit expanded.
4. Is There A Catch?
"Each dollar of payment that you get now reduces how much child tax credit you get when you file your taxes," reports CNN. "If people don’t change their tax withholding from their paychecks, that could mean that they see a smaller tax refund at tax time or even a balance due because instead of getting the full child tax credit when you file your taxes next year, you’ve already got some of it now."