By increasing payments under the Child Tax Credit, American parents could receive a financial boost beyond their stimulus checks.
While much of the focus of the forthcoming relief package has been on a third round of stimulus checks, American parents could see even higher payments because of revisions to the child tax credit. The House of Representatives passed a $1.9 trillion relief package, known as the American Rescue Plan, and the Senate is expected to vote on it this week. Along with extending unemployment benefits and providing another round of direct payments, the package would increase the child tax credit by $1,000 and $1,600, depending on the age of the child. If passed in the Senate, the American Rescue Plan would send out monthly payments to parents as an advance on the refund they’d receive as part of the Child Tax Credit. Joint filers with incomes of $150,000 or less or individuals with adjusted gross incomes of $75,000 or less would be eligible for an annual payment of $3,600 for children under six and $3,000 for children under 17. Instead of receiving it in one lump sum, eligible parents would receive monthly payments from the Internal Revenue Service worth 1/12 of the advance amount.
