Child tax credits will soon be available

Child tax credits will soon be available

For the first time families now will begin receiving monthly child tax credit payments. A move impacting 39 million households with children.

The payments were established when the American Rescue Plan was signed into law back in March.

"A fully refundable credit and an eligible taxpayer can receive it with dependents up to the age of 17," Chantelle Brown with A Class Tax Solutions said.

Brown said under the old tax code the credit was up to $2,000 and $1,400 was refundable. But under the enhanced version more money is available.

"Under the expanded child tax credit, the amount has changed to $3,600 for children under the age of six and $3,000 for children between 6-17 and now it's 100% refundable," she said.

One key part is the income qualifications.

The full credit is available to married couples with children filing jointly with adjusted gross income less than $150,000, or $75,000 for individuals.

The first payments will start on July 15.

"The monthly payments will go from July through December and then the remaining balance is what you would claim as a credit on your 2021 taxes," she said.

Brown said taxpayers who are not interested can opt out and take their full tax credit on their 2021 tax filing.

Watch below the full Q&A about child tax credit with tax expert Chantelle Brown.

Child Tax Credits

The Biden administration announced today that about 39 million U.S. families will begin receiving monthly child tax credit payments on July 15. We're talking with a tax expert this evening about what you need to know. Join the conversation starting at 6 p.m.

Posted by WPTV on Monday, May 17, 2021

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