HOUSTON - Many families with children will start receiving monthly checks from the federal government in July to help make ends meet. It's the newly increased Child Tax Credit in the American Rescue Act.
The U.S. Treasury says 88% of children in the U.S., or 39 million households, will start getting monthly payments.
The child tax credit that parents can take on their federal tax returns was increased this year from $2000 per child up to $3600 per child under age 6, and up to $3000 per child ages 6 to 17.
Plus the credit was made refundable this year. That means once a month for a year, starting July 15, eligible families will receive up to $300 for each child under age 6, and up to $250 for each child ages 6 to 17.
"If you think about the single mom with two children, a toddler and a second grader, ... after this bill they're going to get about $6600, ... That's $550 a month," explained Chuck Marr, Senior Director of Federal Tax Policy at the Center on Budget and Policy Priorities.
Payments will be made the 15th of each month and arrive through direct deposit, paper check or debit cards.
Texans have until June 15th to file their taxes due to the Big Freeze in February.
The fastest way to get the payments is to enter direct deposit information on your Federal tax return.
This credit is projected to lift more than five million children out of poverty this year. President Biden is proposing to make it permanent in his American Families Plan.
Omni Calculator features a calculator to parents estimate their child tax credit.