Utah parents will start getting extra cash this summer as the federal government gives out advances on its newly increased Child Tax Credit.
Under President Joe Biden’s American Rescue Plan, the amount of money that parents get back as tax credits was raised from $2,000 per child to $3,600 for kids under 6, and $3,000 for kids ages 6 to 17.
Brianna Jacknan, 42, of Salt Lake City, said in March that the extra money from the child tax credit will be a “really big help.”
Jacknan said it’s difficult to live on a fixed income, as she and her husband are disabled, and their two sons have varying forms of autism. The stimulus payments they have received during the COVID-19 pandemic have helped them pay bills and rent and buy new clothes for their children, she said.
Before next year’s tax returns come back, some of the increased money will be given out ahead of time in monthly payments to parents. The Treasury Department says this will help families now rather than forcing them to wait until filing taxes next year to get their money.
Starting July 15 and ending in December, families will get up to $300 a month for kids under 6, and up to $250 for kids ages 6 to 17.
Heads of household making less than $112,500, other individuals making less than $75,000, and married taxpayers filing jointly making less than $150,000 will get the full payment. Payments are reduced for people making more than that. About 39 million households, or the parents of 88% of kids in the United States, are eligible for the payments.
Payments will come through direct deposit, checks or cash, like the stimulus payments given out this year.
More information is available at IRS.gov/childtaxcredit2021.
— Reporter Becky Jacobs contributed to this story.