While Americans wait for the fourth round of stimulus cheques, some families may be eligible for up to $3,600 in tax relief this year.
The expanded federal Child Tax Credit, a component of the American Rescue Plan, was signed into law by President Joe Biden on March 20, 2021, and will take effect in July 2021.
American households received a total of $1,500 or $1,800 in payments under the expanded child tax credit scheme. On the other hand, some families were either unable to receive the payments or opted not to receive them.
Individuals who qualified for but did not receive an increased child tax credit for the previous year are entitled to recover their money when they file their taxes for the current year.
According to the Local 12 newspaper, families with children under the age of six are expected to receive $3,600, while families with children from six to seventeen are expected to receive $3,000, according to the newspaper.
Single parents earning less than $112,500 per year or married couples filing jointly earning less than $150,000 per year, whichever is less, are eligible for the increased child tax credit. Dependent on their circumstances, families with greater salaries may receive a lower credit or may be ineligible to receive the money entirely.
The announcement of the higher child tax credit payments coincides with the one-year anniversary of the American Rescue Plan, which began providing direct payments of up to $1,400 per person on March 11.
Congress has shown no indication that it intends to approve another round of stimulus checks since then, despite the fact that the US has crossed the 960,000 COVID-19 fatality mark and recorded 79.5 million instances.
Several states have taken the lead in instituting their own round of stimulus checks, and others are considering it. In Utah, for example, Republican Sen. Mitt Romney is promoting the reinstatement of enhanced child tax credits, which were earlier eliminated in a 2021 ballot measure but were later resurrected.
According to the proposed legislation, families with children aged 5 and under will receive $350, while families with children aged 6 to 17 will receive $250.
On the other hand, those who receive money from the expanded child tax credit would be forced to meet stringent work requirements.
According to Romney’s campaign, the proposal dubbed the “Family Security Act,” has not yet been properly introduced in Congress. The agreement’s terms are also still being negotiated.
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