Back in March, President Biden signed into law an American Rescue Plan that sent a large amount of funds directly to American citizens. After two other payments of $1,200 and $600 had been made, it immediately sent another $1,400 stimulus payment to most Americans.
In addition, it offered variant ways to get cash to people who needed it. The child tax credit was then expanded by the federal government. For the last six months of 2021, the first half of the new credit was to be paid directly to families as a result of the increase in the amount of money people could claim per child.
Now, we are nearing the next payment. By Monday, November 15, 2021, the funds will be deposited directly into bank accounts. Checks will be mailed out a little later.
Do You Know How Much You’ll Get From The Next Stimulus Payment?
How much money you make and how old your children are will determine how much money you will receive.
Below is a breakdown of the stimulus check disbursement:
- Families with children under 6 will receive $300
- Families with children under 6 to 17 will receive $250
Therefore, if you have two children, ages 4 and 9, you’ll receive $550 (I.e. $300 + $250). Also, the money is fully refundable, meaning that it is not required for the recipient to work or file a tax return.
Limitation on Income
In accordance with the IRS;
- When your modified AGI exceeds $25,000 in 2021, the Child Tax Credit is reduced to $2,000 per child.
- For married couples filing jointly or for qualifying widows or widowers filing jointly: a $150,000 income threshold stands.
- For heads of household filing jointly: a $112,000 income threshold stands.
A single filer or a married couple filing their separate tax returns up to $75,000 income threshold stands.
The Child Tax Credit will be reduced by $50 for every $1,000 (or fraction thereof) by which your modified adjusted gross income exceeds the applicable income threshold described above.
When the payment is received on November 15th, it constitutes the second to last payment under this version of the credit disbursement. Most of the $3,600 credit will have been given to families with children under 6 years old and $3,000 to families with children aged 6-17. A final payment will be made in the coming month. Delivery is scheduled for December 15.
Currently, the outlook for the expanded Child Tax Credit is unclear. Ideally, Biden wants the extended credit to last for a year and also be made permanent. However, lawmakers in Washington D.C. desire a change to this tax credit – specifically, Senator Joe Manchin of West Virginia. The Senator, in particular, wants work requirements to be added to the payments.