MYRTLE BEACH, S.C. (WBTW) – The payments are part of the Biden administration’s pandemic relief plan that passed earlier this year.
According to financial experts at Carolinas Wealth Management, low and middle-income parents can expect to receive $3,000 dollars for every child ages 6 to 17 and $3,600 for every child under age 6. The IRS has sent out letters to eligible families about the credit. Half of the credit was paid to some on July 15.
The IRS will deliver monthly payments on the 15th of every month through the end of the year.
“The government has decided to take it a step further, given the pandemic and the issues that people are still dealing with have decided to do that on a monthly basis,” said financial planner David Monckton. “So, families are getting the first half of that credit every month the balance of this year, and then they will get the second half of the credit when they do their taxes in 2022.”
That breaks down to between $250 to $300 per month. Financial experts also offer ways to use the child tax credit. They said you can save the money each month for college tuition, get a big-ticket item for your child or buy new shoes and clothes.
With money coming every month you can buy good meals, fresh fruits, and vegetables.
“They are getting more now than what they would have gotten and they are getting it now rather than in the future as most young families really do need that additional assistance given everything that is going on now in the world today,” Monckton said.
If you haven’t received them already, those payments will be delivered by mail or direct deposit.
A growing number of lawmakers are coming out in favor of making the monthly cash infusions a long-term benefit for parents, but there is also some fierce opposition to add new spending in the wake of costly pandemic rescue efforts and fears of inflation.
Research from 2011 suggests such tax credit infusions can help school testing averages for lower-income students, potentially providing better opportunities for scholastic and career success while at the same time putting making food and other necessities more attainable.