Eligible parents could receive child tax credit in advance

YUMA, Ariz. (KYMA, KECY) - July 15th is the first day eligible parents can receive up to 300 dollars per child as part of the American Rescue Plan. This means you would be getting advance payments of your 2021 child tax credit which you would normally receive after filing your taxes.

The past year may have been tough for many parents trying to keep up with bills while still trying to provide for their families.

If you opt-in to the new child tax credit it would allow the internal revenue service to send money in advance for several months.

“This is a real game-changer. This is the Biden administration's plan to fight childhood poverty,” according to Arizona Representative Charlene Fernandez.

To be eligible for the new tax credit single parents must make under $75,000. As a head of household, you have to make less than $112,000 while married couples have to take home under $150,000.

Each payment will be up to 300 dollars per month for each child under 17.

Fernandez says there are many different things the funds can cover.

“I think many parents can't get back to work because of childcare costs we know that it costs a lot to get kids into childcare, this money can be used for childcare, it can be used to put food on the table, it can help with rent, mortgage payments, so it will help our working families and I'm very excited about what it will do for families right here in Yuma County,” Fernandez explained.

Congress recently increased the credit for up to $3,600 from the previous $2,000.

The payments will come via direct deposit or check by mail each month till the end of the year. There is even a chance we could see this happening again.

“Unless we have a congress that says this is working this is really helping our working families and it's adding to the economy. Let's put some more money into this and let's continue with,” she said.

Opting out of the early payments simply means you would not receive the credit till tax time next year.