Omaha group, parents say child-tax-credit funds will be big help
OMAHA, Neb. (WOWT) - Millions of parents should see more money in their checking accounts as early as tomorrow.
The Biden administration’s American Rescue Plan increased the child tax credit from $2,000 per child to $3,600 per child. And parents will now receive half of that benefit through monthly payments.
Sarah Seevers and many other parents will tell you it costs a lot of money to raise a family. Seevers has two children: Winney and Ida.
“It’s so much more expensive nowadays, just child care and everything,” she said.
“If they need help with housing, or food, or diapers, or child care, or whatever that need is, this can help fill some of that gap,” said Aubrey Mancuso, executive director of Voices for Children, an organization that helps families and kids. Mancuso said the child tax credit funds will give many families a monthly payment through the end of the year. The amount depends on how many children and their ages, along with the family’s income.
“Families making $150,000 a year jointly will get up to $300 per child under 6, and $250 for kids ages 6-17,” she said.
Officials say the monthly child tax credit payments are designed to stimulated the economy and to help families bounce back from COVID-19-related shutdowns.
John Gross is the owner of Midwest Accounting and Tax Service, said, “The only way it’s going to affect your return is people who receive the half-amount of the stimulus during the year will be able to get the other half as a credit on their tax return when they file their 2021 income tax return. So it shouldn’t really be a difference, no.”
“The way the child tax credit usually works,” Mancuso said, “is that families can claim it at tax time. But for many families, tht income would be much more valuable through the year to meet monthly expenses.”
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