NJ Families Receiving Another Stimulus – Are You Getting Money?
This summer, millions of eligible New Jersey families will be getting relief in the form of payments from the IRS. Unlike the recent New Jersey tax credits that are going out now, these are coming from the Federal government.
It's part of the 2021 Child Tax Credit. The President expanded on this with the American Rescue plan which includes the "enhanced Child Tax Credit."
Still with me?
While this is good news for families that are working hard to make ends meet and need the money, it is a little complicated, so let's break it down.
What is the enhanced Child Tax Credit?
The original Child Tax Credit was a yearly $2,000 benefit per year, that was factored in when you filed your taxes. The enhanced Child Tax Credit increases this benefit to up to a $3,600 benefit per child. Plus, if your family is eligible, you can receive monthly advance cash payments from July to December, 2021. In fact, the first installment of $250-$300 advance payments start going out on July 15.
Am I eligible for the 2021 Child Tax Credit?
According to the White House, to get the maximum benefit:
- Families must make less than $150,000 a year and file their taxes as a couple.
- A parent filing as 'head of household' must make less than $112,500.
- A single parent filing alone must make less than $75,000.
How are the 2021 Child Tax Credit payments made?
If you or your family are eligible for the maximum amount, you will get up to $300 per child 6 years and under and $250 per child ages 6-17. Payments will come to you monthly starting in July through December.