The US Treasury Dept and the IRS have finally announced that the first installment of the CTC will start July 15. It follows the third stimulus check and around 39M families will get their payments.
The payments will continue through December 2021 on the same date. A public holiday or a weekend on that day could alter that date.
The funds will give a maximum of $3600 per family for every child below 6, and $3000 for every child between 6 and 18.
Half of the amount will be given as part of the refund in the tax season next year.
Starting March 12, the IRS has already sent out 165 million stimulus checks with a total worth of $388 billion.
The Second Relief In A Year After The Third Stimulus Check
With this announcement, 90% of American families having a child will avail these relief measures. President Biden has plans to push the child tax credit through 2025. It will be a welcome relief for millions of families.
More than 5 million children will be saved from poverty through this measure. Child poverty is expected to be cut by half.
The payments will come in through bank transfers, and paper checks, or debit cards.
Efforts will continue to bring all families with children under the cover of this relief.
The income slabs for calculating the amount are similar to the third stimulus check. Individuals with AGI $75,000 maximum will receive the whole amount. It will phase out with a decrease of $50 for an increase of $1,000 in AGI. For married couples, the phase-out starts at $150,000.
Individuals and married couples can still get $2,000 for each child if the income is less than $200,000 and $400,000 for individuals and married couples respectively.
Parents without any income will still get the check. Previously they were required to earn a minimum of $2,500 to be entitled to the payment.
