ST. LOUIS – Parents, check your bank account. Thursday marks the first day millions of Americans will receive new Child Tax Credit payments.
It’s part of the $1.9 trillion American Rescue Plan that Congress passed in March. Approximately 15 million households will now receive the credit. Some Missouri families say the new Child Tax Credit will provide some financial relief for their families.
Ana Ventura, a mother of three, decided to enjoy a day of fun in Forest Park after waking up this morning and noticing the payment in her bank account.
“I’m going to make sure I get caught up on all my bills and pay them off…and get my kids more clothes,” she said.
To qualify, single taxpayers must make $75,000 or less; married couples filing taxes jointly must earn $150,000 or less.
Eligible families will receive up to $300 a month for each child under the age of 6 and up to $250 for each child ages 6 through 17. Most families will get up to $3,000 per child in total.
The trillion American Rescue Plan extended the tax credit and made it possible for more people to receive relief.
The Child Tax Credit will have a major impact on millions of parents, like the Homawoo family from Illinois. They have two children under the age of 5 and say they will invest the money in their kids’ future.
“We have two kids. That’s $600 a month,” Homawoo said. “We are excited we have college funds for both of them, so the money is going straight into the college funds.”
The IRS will send out money based on last year’s tax return. If you filed taxes for 2019 or 2020, you do not have to do anything. The checks will automatically be mailed or direct deposited into your account.