The fourth Child Tax Credit payment is expected this week. Those eligible can receive their Child Tax Credit payments this Oct. 15 through direct deposit. If they are waiting for paper checks, they have to wait a little bit longer.
Where Can Parents Use The Payment
According to CBS Detroit, parents can use the extra $250 or $300 per child, depending on their age, on whatever they like. Parents can use it for essentials like food or rent or spend it on school supplies or a new computer since the increase in COVID-19 cases may push students back into remote learning again.
This month’s Child Tax Credit payment is the fourth of six payments released by the Internal Revenue Service (IRS). The Biden administration allowed for the advanced Child Tax Credit payments under the American Rescue Plan, and many are pushing for the extension of such advanced payments until 2025. The IRS will release the other half of the Child Tax Credit payments to those eligibles once they submit their tax return next year.
How Much Will Parents Get
Children aged five and below get $3,600 or $300 monthly from July through December. Children aged six to 17 get $3,000 or $250 monthly from July through December.
The parents’ amount through the advanced Child Tax Credit payments was based on parents’ modified adjusted gross income (AGI) as reflected on the 2020 tax filing. The amount is the rate of $50 for every $1,000 of annual income beyond $75,000 for an individual and beyond $150,000 for a married couple jointly filing. Qualifying families receive the full amount per child regardless of what they owe in taxes. Further, there is no limit as to the number of dependents that families can claim.
It is worth noting that parents of a child who ages out of an age bracket will expect a lesser amount. For example, if a five-year-old turns six this year, the parents will receive $3,000 instead of $3,600. So that will result in a monthly payment of $250 instead of $300. If a 17-year-old turns 18 this year, the parents will receive a one-time payment of $500 and not $3,000 or $250 monthly.