As a part of the Child Tax Credit relief bill approved last March by Congress, families are eligible for some extra cash. Parents who make $125,000 or less gross income with at least two children under 13 are eligible to receive up to $8,000 extra.
The credit is a part of the American Rescue Package, which was a $1.9 trillion dollar relief package that became active in March that allows parents to receive money directly. This is the sixth round of payments.
“The credit is calculated based on your income and a percentage of expenses that you incur for the care of the qualifying persons to enable you to go to work, look for work or attend school,” said the IRS.
Instead of receiving the payments in one lump sum, the money is distributed throughout the year. This allows some cushion for parents who need extra help with daycare, after-school activities, or other necessary measures.
The funds are additionally for those who have a dependent with a disability, per The Sun. The money will help offset extra costs of living, according to the IRS.
Since last year, parents who qualify received monthly payments of $300 per child. One mother stated that while the lump sum of extra cash at the end of the year is nice, the split-up monthly payments have allowed her to feel less stress when it comes to caring for her child.
Child Tax Credit Info from the IRS
According to the IRS website, “For 2021, the American Rescue Plan Act of 2021, enacted March 11, 2021, made the credit substantially more generous (up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons) and potentially refundable, so you might not have to owe taxes to claim the credit (so long as you meet the other requirements).”
It goes on to explain: “This means that more taxpayers will be eligible for the credit for the first time and that, for many taxpayers, the amount of the credit will be larger than in prior years. However, taxpayers with an adjusted gross income over $438,000 are not eligible for this credit even though they may have previously been able to claim this credit.”
To receive these funds in 2022, the IRS will send out a 6419 form to all eligible families. Families can fill it out and return it in order to receive the sixth round of child tax credit payments. If you’re filing electronically, receiving the payments can take as little as three weeks. If you’re filing by mail, you’ll need to wait up to eight weeks to begin seeing any payments.
For more info on child tax credits in 2022, go here.