Parents are finally catching a break as we try to find the end of this pandemic together.
Under the coronavirus rescue package, a temporary benefit called the ‘enhanced child tax credit’ will begin July 15. This means families will be eligible to receive assistance of up to $300 per child under the age of 6 and $250 for children between the ages of 6 and 17.
Payments, which will be released monthly until December 2021, will be sent via direct deposit. If the IRS does not have your bank information, you will get your checks or debit card in the mail.
The package also makes the tax credit fully refundable so that more low-income parents have the chance to access it.
Payments will be based on taxpayers’ 2020 tax returns or their 2019 returns if the 2020 returns are not filed and processed yet.
The agency is setting up a portal that will allow parents who do not have to file a tax return to submit their information. This portal will also allow parents who were unable to claim any stimulus checks they may have missed during the pandemic to finally be eligible to do so.
More details will be announced in the coming weeks, so be sure to check back for updates.