HISTORY is being made as families with children under the age of 18 will be receiving money from the federal government this week.
In the first of six child tax credit payments, roughly $15billion has been sent to 35.2million US families, according to the White House and IRS.
History is made
These payments, received either by direct deposit or by check, will depend on the number of eligible children and income.
“For the first time in our nation’s history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor’s visits, school supplies, and groceries,” said Treasury Secretary Janet Yellen in a statement.
“This major middle-class tax relief and step in reducing child poverty is a remarkable economic victory for America — and also a moral one.”
Nearly 60million children will be benefiting across the country with checks averaging $423 in the first round, according to the IRS.
This marks a first for a major tax credit to be sent out on a monthly basis and is one of the largest anti-poverty moves we have seen in the US.
“It is a huge deal,” said Arohi Pathak, director of policy at the Poverty to Prosperity program at the Center for American Progress.
“[The child tax credit] is a huge relief for way too many working parents and particularly during this pandemic.”
How much will you get?
For each child that is under the age of six, you will receive up to $300 per month, $3,600 total.
Children between six and 17 will be granted up to $250 each, $3,000 total.
Single filers with an AGI of $75,000 or less, $112,500 as a head of household, or $150,000 filing jointly will receive the full payment.
The enhanced credit was created to provide relief for the poorest households while also giving families with kids more financial support.
What this means is that you don’t have to have a taxable income to reap the rewards.
This credit will reach approximately 27million children, including half of the Black and Latino community who did not previously get a credit, according to the Center on Budget and Policy Priorities.
“It’s going to target the folks who need the support the most,” said Joanna Ain, associate director of policy at Prosperity Now, a financial literacy nonprofit organization.
According to estimates by the Center on Poverty and Social Policy at Columbia University, the tax credit would reduce child poverty by 45 percent reducing poverty by 52 percent for Black children, almost 62 percent for Native American children, and nearly 45 percent for the Hispanic youth.
As of now, the monthly credits will end in December 2021 but lawmakers are in the works of extending the benefit or making it a permanent expansion.
President Joe Biden is seeking to keep the enhanced credit part of his infrastructure package in the coming years.
“It is nobody’s plan that this will exist for just 2021,” an administration official stated on a call with reporters on Wednesday.