Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Facebook X (Twitter) Instagram
    Friday, June 6
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025

      Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

      May 15, 2025

      Hooters Declares Bankruptcy

      April 8, 2025

      Costco to Open 6 New U.S. Stores Next Month and Another in April—See the Locations and Dates

      February 28, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » American Families Will Start Receiving Child Tax Credit Soon — Here’s What To Expect 
    Editor's Picks

    American Families Will Start Receiving Child Tax Credit Soon — Here’s What To Expect 

    DunniBy DunniMay 6, 20245 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Protest against child poverty
    Source: Joanna Ain/LinkedIn
    Share
    Facebook Twitter LinkedIn Pinterest Email

    All things being equal, tax-paying American families should start receiving monthly child tax credit payments by July. 

    An Individual Tax Form on the Table
    Source: Leeloo The First/Pexels

    This information was made public by Chuck Rettig, the IRS Commissioner. In a recent statement, he testified before the Senate Finance Committee and inferred that the portal for the said payments will be launched on July 1.

    Old Wine, New Skin 

    According to a professor of early learning policy studies, Lisa Gennetian, the child tax credit is not a new financial instrument. However, the expanded version is poised to empower financially struggling families and tangibly reduce child poverty. 

    Prof Gennetian giving commentary on a recent research
    Source: Jacobs Foundation/YouTube

    Gennetian explains that the July kickoff of the expanded child tax credit would be the first time the US is adopting it as a poverty alleviation strategy. 

    What Is Child Tax Credit?  

    In simple terms, a tax credit is a legitimate deduction that a taxpayer can make on their tax payment. In the case of the child tax credit, parents and caregivers who qualify have a given amount deducted from their tax payments. 

    Tom Wolf greets students at Crispus Attucks
    Source: Gov. Tom Wolf/Wikimedia Commons

    Besides the deductions for child tax credits, some taxpayers get tax refunds during tax season. 

    Biden’s Tax Reform 

    Likewise, the refund can be scheduled as a monthly advance, so far as the concerned party turns in their tax filing by April 15. 

    Dollar bills and tax return forms
    Source: Pictures of Money/Flickr

    While President Joe Biden has signed the American Rescue Plan Act since March 2021, beneficiaries will start receiving the first set of payments by July 2024. This scheme is expected to cut child poverty in half after its full adoption. 

    Bringing Americans Up To Speed  

    During Rettig’s sion atSenate meeting, he explained that his commission has made the child tax credit portal user-friendly. 

    Commissioner Rettig at the USDA headquarters
    Source: Lance Cheung/Flickr

    Likewise, they want to sensitize Americans about the scheme and how each family can benefit from it. Rettig said, “We have already put our teams together and our working groups together and we’re looking at communication strategies and all the rest.” 

    The American Rescue Plan Act  

    The American Rescue Plan Act, which was passed into law in March 2021, provided a $1.9 trillion stimulus to make the Child Tax Credit a reality. 

    A picture of a wad of hundred-dollar notes
    Source: Nick Youngson/PIX4FREE

    For each tax year, eligible caregivers or parents will get as much as $3,600 for each child, 5 years and below. Meanwhile, those with kids aged 6 to 17 will get a $3,000 tax credit per child. 

    Credits Subject to Time of Tax Filing  

    However, beneficiaries need to file their tax returns before April 15 to enjoy these tax credits. For example, if you want to enjoy the credit on your 2023, it is essential that the filing be turned in before April 15, 2024.

    Tax Return Document
    Source: Mark Youso/Pexels

    According to Professor Gennetian, the IRS will send you a check if you have any surplus after the credit deductions.

    The Old and the New    

    It may take 6 to 8 weeks for the check to arrive in your mailbox. Unlike the child credits in force before the American Rescue Plan Act, the new credit has some added benefits. 

    Man and woman holding papers at home
    Source: Nataliya Vaitkevich/Pexels

    One, the eligibility age of the children has been reviewed upward to cover a wider pool. Likewise, unemployed parents and caregivers can now benefit from the credit.

    Expanded Tax Credit Is Better 

    In the previous child credit program, the beneficiary parent or caregiver will have to show evidence of a minimum income of $2,500. That requirement has now been waived. 

    Girl Playing with a Dog
    Source: MART PRODUCTION/Pexels

    In addition, eligible beneficiaries can get an advance on their child tax credit benefit. For example, they can get monthly payments of $250 or $300, up to half of their total annual credit payment. 

    A Road to Poverty Eradication  

    The Poverty to Prosperity Program (PPP) also points out that this new child tax credit will cut down the national incidence of poverty. According to Alexandra Cawthorne Gaines, vice president of the PPP, “The impacts on racial disparities are very dramatic.” 

    Little girl looking on
    Source: David McGranahan/USDA

    When families get a pseudo-subsidy for the care they provide to their children, such families find the journey to financial freedom a bit easier. 

    Indigent and Income-Earning Beneficiaries 

    The traditional tax credit awards $2,000 annually for each child under 17. However, the expanded child tax credit is very attractive to parents and caregivers. 

    A woman writing on sticky notes
    Source: Karolina Grabowska/Pexels

    Currently, in addition to the indigent beneficiaries of the expanded tax credit, income-earning parents or caregivers can also benefit from the scheme.  

    Tax Credit for the Needy  

    Beneficiaries earning between $75,000 and $150,000 are eligible. However, above $200,000, the benefit begins to taper off. 

    Person begging for alms

    The expanded child tax credit’s six-month monthly payment will be forwarded to the beneficiaries’ bank accounts. Subsequent benefits will be in lump sums. 

    child tax credit IRS Tax
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleGen Zs Are Boarding Up With Their Parents to Save Cost, But It May Have Long-term Repercussions 
    Next Article Christy Romano Has Publicly Clarified Her Financial Status After a Report Claimed She’s Worth $3 Million

    Related Posts

    Editor's Picks

    The Highest-Paying Jobs in America—And It’s Not in Finance!

    March 27, 2025
    Editor's Picks

    6 Financial Adjustments Upper-Class Retirees May Face During Trump’s First Month as President 

    January 30, 2025
    Entrepreneur News

    Vanguard’s $106 Million Target-Date Fund Settlement Highlights an Important Tax Lesson

    January 27, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.