(WSIL) - The Child Tax Credits start going out in July. Those payments are part of President Joe Biden's American Rescue Plan passed in March 2021.
Those monthly payments are designed to last July to December, 2021. They expand the already-existing child tax credits.
Under the new plan, families with six to 17-year-olds will get $3,000 per child, instead of $2,000. Those families will get an additional $600 per child younger than six.
Those payments are gradually phased out for single parents who earn more than $75,000 annually and couples who earn more than $150,000.
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News 3 spoke to Tom Van Horn, a Certified Personal Accountant (CPA) in Marion. We asked if those advance monetary credits will have to be repaid.
Van Horn says it depends. Single parents who earn less than $40,000 annually-and couples who earn less than $60,000-will not have to repay.
He does the higher the income, the less of a credit families will get.
Van Horn says the advance credits can also impact tax returns. He broke it down like this:
Under the American Rescue Plan, a family with two children younger than 17 qualifies for $6,000 dollars. If that family gets the advance payments through December 2021, they'll get $3,000 of what they qualify for. In that case, they would only get $3,000 more on their tax return.
In the case of a divorced family, Van Horn says the parent who claims a child on their 2021 return will get the advance credits.
As of June 29, 2021, the advance and expanded credits will only last through the end of 2021.
Families can choose to opt out of the advance credits. Van Horn says if a family makes more than $150,000 annually, or a guardian's financial situation has changed, they may want to check on their eligibility for the payments. That can be done through the IRS website.
