(WWJ) Got dependents? You'll want to keep an eye on your bank account this week.
The U.S. government said Thursday that it is beginning to deposit monthly child tax credit payments into the accounts of more than 35 million families nationwide.
President Joe Biden has expanded the credit for one year as part of an effort to help families as the nation recovers from the coronavirus pandemic.
Beginning July 15, monthly payments will be issued of up to $250 for each child 6 to 17 years old and $300 for each child under age 6. In total, Senator Debbie Stabenow says most Michigan families will receive $3,000 for each child ages 6 to 17 years old and $3,600 for each child under age 6.
In Michigan, it is estimated that the child tax credit expansion will benefit more than 1.9 million children under age 18, or about 92% of Michigan kids.
Do you need to sign up? Probably not. Most families will begin receiving the monthly payments without taking any action.
However, families who have not filed taxes for 2019 or 2020 or did not previously claim economic impact payments (aka stimulus payments) must sign up to receive monthly child tax credit payments through a new online IRS tool at www.childtaxcredit.gov.
What if I have a newborn? Taxpayer parents of babies born in 2021 will be able to use the Child Tax Credit Update Portal HERE to report new dependents throughout the year.
“This pandemic has been tough for everyone. But families with children have been especially hard hit," said Stabenow, in statement. "This tax cut helps those who need it most to have additional resources to care for their children. It will improve the lives of millions of Michigan children, help moms and dads pay for child care and other essentials and allow them to successfully return to work. This is a very important part of the American Rescue Plan."
It's not yet known how long these payments will last. President Biden is seeking to make them permanent, saying it would cut child poverty in half and help economic growth.
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Arguing against continuing the program, some Republican lawmakers say the payments will make parents less likely to seek work.
Have more question about if you qualify, or how the program works? Visit irs.gov/childtaxcredit2021.
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