How the child tax credit will impact Nevada families
RENO, Nev. (KOLO) - Nevada families struggling to stay afloat financially are getting a boost from the Government.
“This is real money that will make a real difference.”
“as part of the American Rescue Plan, congress temporarily increased that credit and it expanded the number of families that are now eligible,” Rep. Horsford said.
The credit will now be $3,600 for children under age six and $3,000 for ages six to 18.
“Under the prior law, the amount of the child tax credit was up to $2,000 per qualifying child under 17 at the end of the year,” Anabel Marquez, IRS Congressional Liaison for Nevada said.
Starting July 15, 2021, through December, half of that money will be advanced through monthly payments of $300 for kids under six, and $250 for those aged six to 18.
Marquez added, “If someone opted to have their refund check mailed to them, the IRS will issue that payment in the same format by which they received their tax refund. If you included your direct deposit banking information on the tax return, then your monthly payments will be directly deposited in that same account.”
Then, when you file for the 2021 tax return next year, the other half of the tax credit will be paid through your income tax return.
“This is going to inspire that hope that has been lost for this past year, so we’re really excited for these families, and for myself, for how it’s going to impact us,” A’Esha Goins with Make It Work Nevada said.
The increase will benefit 94% of all children in the Silver State and help cut child poverty across the country in half. Starting July 15th, more than 39 million American households will automatically receive this new child tax credit directly into their bank accounts each month.
Rep. Horsford added, “I’m working to push to make it permanent and to extend it and I hope that we’ll see action on that in the months to come.”
The income limits for the full Child Tax Credit are as follows:
- $75,000 or less for single filers
- $112,500 or less for heads of household
- $150,000 or less for married couples filing a joint return and qualified widows and widowers
Low-income families and those who have not yet filed their taxes can use an online tool to sign up for the Child Tax Credit.
For more information, click here.
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