Federal Payments to Georgia Families with Kids starts now

As part of the American Rescue Plan that President Joe Biden signed into law in March, the federal government will now be providing millions of families monthly payments through its new, expanded child tax credit.

The full credit is available to all eligible children in families with 2020 or 2019 adjusted gross income of less than $75,000 for single parents and $150,000 for a married couple filing jointly.

Half of the credit will come to American families as advanced monthly payments starting July 15 and continuing through December. When families file their 2021 tax returns next year, they will get the remaining half of the credit in their usual refund, or it will offset other taxes if they owe the IRS.

For the tax year 2021, it expands the existing child tax credit to $3,000 from $2,000 for dependents 17 and younger and gives an additional $600 for children under the age of 6. For children between 6 and 17, the full credit will amount to $250 per month. For children under the age of 6, the full credit will be $300 per month.

The full enhanced credit ends for individuals earning $95,000 and married couples filing jointly making $170,000, though they would still be eligible for the regular child tax credit, meaning they would get lower monthly payments starting in July.

According to the IRS, some 39 million families with children will receive the credit. An analysis from the Center on Budget and Policy Priorities said the money will lift more than 4 million children out of poverty.

Going forward, some lawmakers and researchers are pushing for the enhanced tax credit to continue. President Biden proposed extending the credit through 2025, while other Democrats want to make it permanent.