The Treasury Department estimates that 35.2 million families received payments in July, with the amounts averaging $423.
Low-income families are using their Child Tax Credit money to pay bills and support their other needs, the Associated Press reported. The expanded credit is part of President Joe Biden ‘s American Rescue Plan, the $1.9 trillion coronavirus relief package he signed in March. Families are getting an average of $423 this month, and the Treasury Department estimates that 35.2 million families received payments in July. Brianne Walker of New Hampshire is a mother and guardian in one of those families. She desperately wanted to take her three children and two siblings camping for the first time but couldn’t afford it. Behind on rent, day care and grocery costs, she found it was all adding up to be too much. Then she found out this month she had money from the expanded tax credit. For more reporting from the Associated Press, see below: «The additional money does help alleviate the pressure,» said Walker,29, who took custody of her two siblings last year after her mother overdosed. The $800 credit that came into her bank account will help make up for losses she incurred after quitting a kitchen design job to care for the five youngsters, ages 3 to 19. Christina Darling, also of New Hampshire, finally replaced her 2006 Chevrolet Equinox after it broke down several times while picking her children up from day care. But the 31-year-old mother of two was struggling to keep up with the car payments. Then, like Walker, she received the payment this month. Biden increased the amounts going to families and expanded it to include those whose income is so little they don’t owe taxes. The benefits begin to phase out at incomes of $75,000 for individuals, $112,500 for heads of household and $150,000 for married couples. Families with incomes up to $200,000 for individuals and $400,000 for married couples can still receive the previous $2,000 credit. In the past, eligible families got a credit after filing their taxes—either as a lump sum payment or a credit against taxes owed. But now six months of payments are being advanced monthly through the end of the year. A recipient receives the second half when they file their taxes. The credit is $3,600 annually for children under age 6 and $3,000 for children ages 6 to 17. Eligible families will receive $300 monthly for each child under 6 and $250 per older child. Advocates argue the monthly payments make more sense for low-income families. «One of the problems with the big check in a year, if your car broke six months before, that is a long time to wait,» said Michael Reinke, executive director of the Nashua Soup Kitchen & Shelter, which serves many families making less than $26,000 a year.
