Eligible New York City families with children 17 years old and younger will receive monthly payments of up to $300 from the IRS for the rest of the year beginning this Thursday, July 15.
The funds are the result of an expanded Child Tax Credit made available through President Joe Biden’s American Rescue Plan, otherwise known as the coronavirus relief package, passed by Congress earlier this year.
The plan included an extension of the Child Tax Credit until 2021 and an increase in payments to $3,600 per child below the age of six and $3,000 per child between the ages of six and 17. Parents will receive half of their payments this year and the second half until the spring of next year unless they wish to receive one lump sum credit payment next year after filing their 2021 tax returns. In order to do this, interested parents need to visit the IRS website and follow opt out of its monthly payment program.
CTC payments this year are based on parents’ 2020 tax returns. Single parents making $75,000 or less or couples making $150,000 who file jointly are eligible to receive the full credit. Single parents or couples making more than those amounts are eligible for reduced tax credit with the income cap set at $240,000 for a single filer and an annual income of $440,000 for joint filers. For every extra $1,000 in annual income above the $75,000 and $150,000 thresholds tax credit payments decrease by $50.
Parents who do not earn enough money to file an income tax return may still be eligible for the credit payment as well and should register the IRS’ “Non-Filer Sign Up Tool” which non-filers used to get their stimulus checks.
“The expansion of the Child Tax Credit in the American Rescue Plan is a monumental step in our nation’s efforts to combat child poverty,” said Jennifer March, Executive Director of Citizens’ Committee for Children. Prior to the pandemic, over 800,000 children across the state lived in poverty and staggering number that grew during the pandemic March added. “This sorely needed monthly infusion of funds will make a world of difference for families after being disproportionately hit by falling incomes and job loss during COVID-19.”
Families should expect to receive a second CTC payment on Aug. 13 and then the 15th of every following month until December.