Child Tax Credit How soon will parents get monthly checks up to $300

The third stimulus bill increases a valuable tax credit for parents. The $1.9 trillion Covid relief bill, passed by the House Wednesday, will provide additional relief to parents. President Joe Biden is expected to sign the bill on Friday. The bill includes the expansion of an existing tax credit for only one year, although Democrats would like to make the change permanent. Rather than see the credit a year from now, when people file their 2021 tax returns, they could start to see some of the money in July, experts said, although it is not clear how the payments will be sent. The current Child Tax Credit gives parents $2,000 per dependent under age 17, but the stimulus bill substantially boosts that amount. Under the new bill, parents will get $3,600 per child up to age six, and $3,000 per child ages 6 to 17. This is the first time 17-year-olds are included in the credit. To qualify, the child needs a Social Security number and must have lived with the taxpayer for at least six months during the year. The updated credit also changes the income limits to be eligible. Singles with adjusted gross income of up to $75,000 would get the full amount, as would married couples filing jointly who earn up to $150,000. The credit would then phase out, going down by $50 for every additional $1,000 of income. Those who are not eligible for the higher amounts can still claim $2,000 per child — the previous amount available — as long as adjusted gross income is below $200,000 for singles and $400,000 for those married filing joint returns. The credit is also fully refundable, which means parents would get the money even if they don’t have any income. The credit previously required parents to earn at least $2,500 a year to be eligible. The expanded credit comes on top of the individual stimulus payments of $1,400 per person for those who are eligible, including any dependent, such as children, college students and older relatives that a person claims on their tax return. Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com. Note to readers: if you purchase something through one of our affiliate links we may earn a commission.