Checks to families eligible for child tax credit on track to go out in July
WICHITA, Kan. (KWCH) - Checks going to families eligible for the child tax credit are on track to go out starting in July. It’s part of the $1.9 trillion COVID-19 relief bill that provides hundreds of dollars per month per child.
“It’s not very widely known at this point. You’d be surprised the amount of people that don’t even know the tax date has been extended from (April 15) to May 17,” said Shane Albrecht with Liberty Tax.
He discussed how this year has been different due to COVID-19. As part of the COVID relief package signed into law last month by President Joe Biden, the child tax credit was increased for one year, with children ages six to 17 eligible for a $3,000 credit and children under six getting $3,600. The legislation also makes the benefit fully refundable and expands it to low-income families.
“Keep in mind, when you take those payments, your refund is going to go down, so something you would expect to have is going to be a lower amount,” Albrecht said.
The child tax credit is for individuals making up to $75,000 per year and couples earning up to $150,000. If you’d rather have a lump sum at tax time, you can opt out of the payments. The IRS says it’s working on a portal for people to opt out.
“You can opt out of this if you’d rather get the big refund. When it comes tax time next year, you can do that, or you can take the $600 payments. It’s your choice,” Albrecht said.
Families could receive half of their 2021 child tax credit this year and claim the remaining amount next year on their 2021 tax returns.
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