Millions of American families began receiving payments last month due to the increase of the Child Tax Credit. This month's payments include a minor but potentially significant adjustment.
Each qualified child under the age of six receives $3,600, and each qualifying child above the age of six but under the age of eighteen receives $3,000 under the enhanced Child Tax Credit.
Half of the credits will be paid in six monthly payments of $300 or $250 dollars each kid, up to $1,800 or $1,500 depending on the amount. The remaining amount can be claimed when submitting 2021 tax returns.
August Child Tax Credit Payment
Meanwhile, lawmakers are pushing for the Child Tax Credit to be permanent, citing a study claiming that the payments help decrease poverty in half. The enlarged plan allows families to receive up to $3,600 per kid. However, the program is not permanent since it is set to expire in 2022.
July's payments and those for September, October, November, and December arrived on the 15th of the month. On the other hand, the stimulus payment for August will be paid on Friday, August 13, because the 15th of the month occurs on a Sunday. Per AI.com, your Child Tax Credit will be paid to you by direct deposit if the IRS has your banking information.
Payments will be sent via paper check to anyone who does not have banking information on file with the IRS. Recipients' stimulus payments are subject to income restrictions. Suppose adjusted gross income reaches $150,000 for married couples filing jointly, $112,500 for individuals filing as head of household, and $75,000 for single filers or
Lawmakers urged Child Tax Credit to be permanent
According to National Interest, Cambridge mayor Sumbul Siddiqui has advocated for the tax credit to be made permanent since it helps to alleviate child poverty. According to the Center for American Progress, the increased Child Tax Credit decreases child poverty by 45 percent.
Furthermore, children of race are overrepresented among poor children, perpetuating structural inequities such as racial wealth disparities. The negative consequences of child poverty have huge societal and economic implications in the United States.
The COVID-19 pandemic has only made things worse. Hundreds of thousands of parents and caregivers have lost their employment. Worsening the issue, many parents have been compelled to abandon their primary professions to provide child care as schools have shuttered and shifted to remote learning. As a result, the percentage of children living with unemployed parents has risen to historic highs during the pandemic.
Five million children are projected to benefit from the increased credit. In the United States, approximately 11 million children - or one in every seven - are considered poor. The study suggests children from two to five years old had more excellent poverty rates than older children. Other lawmakers aside from Mayor Siddiqui want the Child Tax Credit to be made permanent.
Similar suggestions have been proposed by several Democratic lawmakers, including Sherrod Brown, Cory Booker, and Ritchie Torres. It comes as the second batch of Child Tax Credit payments is scheduled to be distributed on Friday.
If you submitted a 2019 or 2020 tax return and qualify for the tax credit, you should get your money automatically. Families might choose not to receive monthly payments and instead claim the whole amount on their 2021 taxes. The IRS is reportedly contemplating allowing parents to opt-out of September payments, but this has yet to be verified, as per The Sun.
Related Article: Child Tax Credit: Here's How to Increase Your Next Stimulus Payments If You Get Less Money Than You Expect
