Child Tax Credit: How Much Money Will Parents Receive Each Month?

Dallas TX

01 May, 2021

11:48 AM

Description

CBS Dallas/Fort Worth May 1, 2021 Raising a child costs a lot of money. Government estimates put the number at over $230,000 per child, not including college, and that figure can be even higher based on the local cost of living. The Child Tax Credit was originally implemented over two decades ago to lessen the financial burden. And millions of parents and guardians are about to receive some more help from Uncle Sam. The American Rescue Plan, signed into law in March, raises the credit amount and changes how it's implemented. The $1.9 trillion COVID relief package increases the Child Tax Credit from $2,000 to up to $3,600, depending on the child's age and the family's income. Qualifying parents will not have to wait for their tax refunds to see that money either. Payments will be issued on a monthly basis starting this summer. According to the stimulus package, the Internal Revenue Service (IRS) will pay out $3,600 per year for each child up to five years old and $3,000 per year for each child ages six through 17. Payments will be issued automatically on a monthly basis from July to December of 2021, with the remainder issued when the recipient files their 2021 taxes. (IRS Commissioner Charles Rettig recently confirmed a July launch "with payments going out on a monthly basis.") The IRS will pay $500 for dependents age 18 or full-time college students up through age 24, but only once. CBS Local Digital Media personalizes the global reach of CBS-owned and operated television and radio stations with a local perspective.