According to the American Rescue Plan, child tax credit benefits will begin on July 15.
Under the program, eligible parents in 2021 will automatically receive $250 per month per child (ages 6-17) and $300 per month per child under 6. Assuming a family with three children under the age of 6 would receive $900 per month. According to regulations, single-parent families with an annual income of less than $75,000 and two-parent families with an annual income of less than $150,000 can receive full child tax credits.
The American Rescue Plan is a new financial aid bill announced by Biden after he took office, with a total amount of up to 1.9 trillion US dollars. It is intended to help people tide over the difficulties during the epidemic. The bill includes direct cash payments to people ($1,400 per person making less than $75,000 a year), extending unemployment insurance, lowering monthly health insurance premiums, providing financial assistance to small businesses, and the Child Tax Credit (CTC) wait.
Among them, the "Child Tax Credit Benefit" is a project that has been implemented by the federal government. The American Rescue Plan will increase the tax deduction. From 2020, the annual tax deduction for children aged 6-17 will increase from US$2,000 to 3,000. USD , 3600 USD for those under 6 years old .
Children under the age of 17 this year can receive a monthly child tax credit of 250 to 300 yuan. The full amount can be received if the family's annual income is less than 112,500 yuan. The amount will be reduced on a sliding scale if the family's annual income exceeds 150,000 yuan. .
Although this benefit is implemented in the name of "tax credit benefit", it is actually a full subsidy for . That is to say, regardless of whether the parents' income reaches the standard for paying taxes, this money will be automatically distributed to everyone who is eligible to receive it. family. The Ministry of Finance estimates that 39 million families will benefit, accounting for 88% of the total number of children. The increase in welfare amounts will lift more than 5 million children out of poverty and reduce the number of children living in poverty by more than half.
For eligible families who have filed taxes normally, the Internal Revenue Service (IRS) will use the taxpayer's tax filing records for 2020 or 2019 as the basis. There is no need to submit an additional subsidy application and the money will be in the form of electronic transfer or check. Send it to the parent's account or mailbox.
However, how can people who have not filed taxes apply?
New York City resident Melinda Williams, a mother of five, believes her family is ineligible for the child tax credit because their income is low and they have never filed an income tax return before. As a result, she didn't pay much attention to Congress' historic increase in benefits earlier this year.
However, in fact, for her situation, the expanded child tax credit in 2021 will allow her to receive $3,000 for each child, and her five children will receive $15,000, which is a considerable amount of money.
This mother filed a 2020 tax return with help from Urban Upbound, a free tax prep center. The return will allow the Queens family to receive not only their monthly child tax credit payment, but also several relief benefits they had previously missed.
She said she planned to use the money to pay for some expenses, as well as school supplies and clothes for her two daughters and three boys, who range in age from 7 to 17. Williams revealed that she is a stay-at-home mom. What does the money mean to her? "It reduces our anxiety," she said. "It's less stressful and you don't have to think about what you're going to do if you run out of money before the end of the month."
The IRS hopes to reach hundreds All low-income families like Williams. Half of the expanded child tax credit will be distributed to families in the form of monthly payments. The payments will begin on July 15 and continue until the end of the year.The IRS has sent more than 36 million letters to parents notifying them of the increased child tax credit and their eligibility.
As for the money in the first half of 2021, people can declare and get the other half when they declare their 2021 taxes next year.
But those who didn't fill out a return last year, or used the IRS's no-filer method to get a relief check, will have to act like the Williams family in order to receive a child tax credit payment. It is not known exactly how many children there are in such families, but it is estimated to be around 5 million. The IRS says it's not easy to reach these families.
The effort also relies on thousands of community groups across the country who are working to educate parents about the child tax credit expansion and encourage them to apply for a refund or register on the IRS website. Both jobs can require a lot of help.
At the same time, we also encourage Chinese friends to actively participate in the application and not to give up this generous subsidy because of their identity or failure to file taxes. This money is a legal benefit that all minor children in families across the United States who meet the income requirements should receive.
Jinghua Abroad
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