In July extra money per baby involves households; how a lot are you able to count on and when?

COLORADO SPRINGS, Colorado (KKTV) – Families can expect more money per child from mid-July. 11 News reached out to a financial planner about when families can expect more money and how much.

Due to the American Rescue Plan Act of 2021, the child tax credit will increase from $ 2,000 to $ 3,000. Up to $ 3,600 for children under the age of 6. As of now, the increase only applies to 2021.

“This is kind of an added incentive,” said Nathan Archuleta of Summit Wealth Group in Colorado Springs. “Our biggest advice is always to pay yourself first. Take care of the essentials, food, shelter, transportation. And then we can work from there to build a more solid financial foundation. “

The IRS says eligible taxpayers don’t need to take any action now other than file their 2020 tax returns if they haven’t.

How much money can i expect?

-The increased child tax credit will be abolished based on income. According to the IRS, the increased amounts will be reduced for income over $ 150,000 for married taxpayers and qualifying widows or widowers, $ 112,500 for heads of household, and $ 75,000 for all other taxpayers.

Starting in July, families will be able to receive monthly prepayments of approximately $ 300 per Eligible Child under 6 and $ 250 per Eligible Child 6-17 years old. Credit includes children who will turn 17 in 2021.

How and when do I get the money?

-With the monthly prepayments, you get half the money from July (starting around the 15th) to December. Then the other half would come during tax time.

OR you can opt out of monthly prepayments and receive a large payment during tax time.

-You can receive your funds either by direct deposit (if you have filed your taxes this way) or by check

Some requirements:

-Child must be a US citizen and have a Social Security number

-Must live with the child for about six months and be related to him

-Child must be claimed as dependent on your 2021 tax return

“There’s an interesting divide not just in Colorado Springs but across the country that some families are really struggling for the bare minimum, especially with the pandemic, while others haven’t had the same kind of pinch that some families have experienced,” Archuleta said .

Summit Wealth Group said around June 1 that the IRS is expected to post more information through two portals. A portal allows you to opt out of monthly prepayments and receive all the money during tax time. The second portal offers taxpayers the opportunity to update information on changes in their income, registration status or the number of eligible children. More details on these steps will be announced shortly.

“I think these prepayments will be beneficial for most families. If you want that extra income or money to come from your tax refund, you can plan a larger purchase, ”Archuleta said.

For more information from the IRS, click here.

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