Democrats are reportedly drafting a plan to expand the Child Tax Credit, which could lead to monthly payments for millions of the neediest Americans.
(CBS Detroit) — Raising a child is expensive. But parents and guardians may soon receive a little help. Democrats are reportedly drafting legislation to expand the child tax credit from $2,000 to $3,000 or $3,600, depending on the child’s age and the family’s income. Qualifying parents wouldn’t have to wait for their tax refunds to see that money. Payments would be issued on a monthly basis. Such a change to the child tax credit will likely be tied to discussions over the proposed $1.9 trillion stimulus bill, and is far from a sure thing. >>READ: Stimulus Check Update: When Could The Third Payment Arrive? According to a Biden administration plan that’s coming into focus, the IRS would pay out $300 per month for each child up to five years old and $250 per month for each child ages six through 17. That adds up to $3,600 or $3,000 per year, depending on a child’s age. Payments would be issued automatically in a similar fashion to the first stimulus checks, and would not be dependent on the recipient’s current tax burden. In other words, qualifying families would receive the full amount, regardless of how much they owe in taxes. Payments would phase out beyond a yet-to-be-determined income threshold. Recipients may also have the option to receive payments annually rather than monthly. The credit would be fully available to families accounting for 27 million children, according to the Center on Budget and Policy Priorities. That covers approximately half of all Black and Latino children, whose families have been hit particularly hard by the economic fallout from the COVID pandemic.
