Starting in July, many Iowa families will begin seeing a new direct deposit hit their checking accounts. The Treasury Department announced Monday that payments of up to $300 through the newly expanded child tax credit will begin on July 15th. NPR reports that the payments are a part of the Biden administration's recently passed American Rescue Plan.

So how does it all work? First of all, under the plan the child tax credit was increased from $2,000 up to $3,600 for younger kids and $3,000 for older children, for the 2021 tax year. NPR reports that instead of making parents wait until they file their 2021 taxes, the relief checks are an advance on half of they would typically get once they filed. Eligible families qualify for up to $300 per month for each child under 6 years old, and $250 a month for each child ages 6 to 17. So my three kids, ages 11, 12, and 16 will see us getting a $750 payment each month.

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This is all based of off your income. Officials say that 90% of families with children will get the payments. NPR reports that the IRS says that married parents filing jointly, earning less than $150,000 will see the full refund amount. If you make more than that, your amount will be less. Parents who aren't under the married category can make up to $112,500 if they are head of household, and $75,000 for all other taxpayers before the refund amount is reduced.

To qualify, you must have already filed your 2020 taxes. NPR also reports that you can opt out of the program and save the entire child tax credit for when you file your 2021 taxes. This will take place on a new IRS website. More details will be released prior to July 15th.

 

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