What you need to know about Biden’s child tax credit
The COVID-19 pandemic has been especially hard on parents. Many working families faced job loss or struggled to manage at-home work and school. Our progressive leaders get it. And that’s why President Joe Biden enacted a new child tax credit to give working families some extra peace of mind.
This program will benefit 36 million American families, including 1,126,000 Minnesota children. It’s the right thing to do to support working families recovering from the pandemic.
But how are these credits distributed? How much will each family receive? When can parents expect payment?
Here’s everything you need to know.
Up to $3600 per child
Before President Biden signed the American Rescue Plan into law, parents could receive up to a $2,000 credit once a year when they filed their taxes. Now, parents can receive up to $3,600 per child. That’s an 80% increase in support for children and their families.
Plus, working families won’t have to wait until tax time to get their credit anymore. Before the end of the year, parents can expect to receive six monthly payments of up to $300, depending on the ages of their children. Next year, families will receive the remaining half of their tax credit, up to $1,800 per child.
Parents of 18-year-olds or full-time college students will receive a $500 one-time check. If you have a new baby or adopt a child in 2021, you will qualify for the credit, too.
Mark your calendars
The first checks will be distributed on July 15th, so Minnesota parents can expect a financial boost in just a few weeks. Subsequent payments will go out on the 15th of each month, except the final payment, which will be distributed in April of 2022.
If you have direct deposit set up with the IRS, that’s how you’ll receive your payment. If not, you’ll receive a check in the mail. Basically, however you received your stimulus checks, that’s how you’ll receive your child tax credit.
Conservatives voted against it
After a year of uncertainty, working families need our support more than ever. That’s why it’s so unthinkable that all of Minnesota’s conservative members of congress voted against the American Rescue Plan. At every turn, conservatives are failing to support Minnesota’s recovery from COVID-19. Check out A Better COVID Recovery to see for yourself, and don’t forget to sign up to hold conservatives accountable.