Parents now able to receive up to $300 through Child Tax Credit Program

Thanks to the Child Tax Credit Program, a part of the American Rescue Plan, some 39 million families who filed taxes in 2019 and 2020 may receive $250 to $300 per child.

RAPID CITY, S.D. — Earlier this year, the $1.9 billion COVID relief plan or ‘American Rescue Plan’ was passed by the U.S. Senate.

Now, some parents are receiving their first payments – which could be as much as 300 dollars.

Thanks to the Child Tax Credit Program, some 39 million families who filed taxes in 2019 and 2020 may receive $250 to $300 per child.

For each child between the ages of zero to five, parents will receive $300 dollars a month from July 15 to December 15. For each child in ages ranging from six to 17, parents will receive $250 dollars.

Roughly 80 percent of those qualify have set up direct deposit and don’t need to do anything while the other 20 percent will get it by check or by debit card.

But for those that think this is the same stimulus checks, it’s not.

“What it really is it’s an advance on what you would file normally in 2022, so for example, you’re going to get a letter from the IRS or you should have already gotten it and you’re going to get another one in January,” said Bonnie Spain, the Executive Director of Consumer Credit Counseling Service in the Black Hills. “This is half of what your credit would be when you file your taxes in January.”

If you earn more money this year and take more money with the allocations, you could owe taxes on the money you take.

The money is meant to help those that need it now, who are struggling to stay afloat.

But if you only need it for a few months and don’t want to risk paying in, you can opt out by going on to the irs’s website.

“Maybe you want to take it for July, August and September but not the last three months of the year or whatever it is,” Spain said. “You need to go in and opt out of it if you want it to stop.”

If your situation has changed, or if you had a child this year, you need to notify the IRS.

Categories: National News