Payments will be monthly in amounts ranging from $250 to $300 per child, increasing the maximum to $3,600 for children under age 6 and $3,000 for children ages 6 to 17.
In remarks made before a Senate hearing committee, IRS Commissioner Charles Rettig presented the payment plans they have for the new child tax credit that are part of the relief bill.
The goal is for the IRS to begin making payments in July. While there is no guarantee yet, Commissioner Rettig stated, “If in the end we don’t get on track because of some unforeseen situation, we will advise the committee.”
In an effort to ensure that these payments are on the proposed schedule, Senator Michael Bennet (D-Colorado) said during the hearing, “Expenses like diapers, formula and child care can’t wait until tax season. Monthly payments are particularly important during the pandemic, as many low- and middle-income families experience significant challenges.”
In an effort to make sure these payments are on the proposed schedule, Senator Michael Bennet (D-Colorado legislator) said during the hearing, “Expenses such as diapers, formula and child care can’t be paid in monthly amounts of $250 to $300 per child, increasing the maximum to $3,600 for children under age 6 and $3,000 for children ages 6 to 17.
The new tax credit comes with restrictions: people with higher incomes will not qualify for the full amount. But if you earn less than $75,000, you will most likely qualify for the full amount.
For every $1,000 of income above $150,000 for a couple filing a joint tax return, or above $112,500 for a person filing as head of household, the credit will go down $50 by $50.
Charles Rettig also told the committee that the IRS expects to hire 1,000 additional customer service representatives to address potential increases in the volume of calls to the agency.
His statement on increased hiring comes after concerns that procedures being implemented to process payments will cause delays in sending payments.
Given all of the above, now is a good time to update any information about your income and dependents with the IRS. Make sure all of your information is updated by May 17 so that you receive the money you are entitled to.n wait until tax season. Monthly payments are particularly important during the pandemic, as many low- and middle-income families experience significant challenges.”
These tax credits are expected to have a significant impact, especially for lower-income families, as these reforms could dramatically reduce the child poverty rate by 52% for non-Hispanic African-American children and 45% for Hispanic children.