Child tax credit payments begin, aiding families with basic expenses
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Starting Thursday, most American households with children will see a bump in their bank accounts. The advance child tax credit payments included in the American Rescue Plan provides up to $250 per child age 6 to 17 and up to $300 a month for each kid under 6.
Atlanta mom Emily Laney is slated to get a $600 monthly child tax credit deposit. “Yeah, it is really helpful for us,” she said.
She’s going to put it toward her two daughters’ preschool tuition. “So we knew it would really help relieve that stress for us of paying for preschool.”
Laney’s family is among 39 million eligible households.
Kris Cox, with the Center on Budget and Policy Priorities, said the cash can help with basic expenses.
“That money can go to pay rent, can buy groceries, can buy school clothes and school supplies,” Cox said.
By her analysis, a lot more families in rural areas will get this financial help. Cox said that in the past, roughly half of those households received partial or no credit because they earned too little.
“Now 94% of kids in rural areas will see their child tax credit go up,” Cox said.
But keep in mind this credit is just for 2021. Unless Congress makes it permanent, the monthly deposits will dry up come January.
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