Are You Actually Spending Your Child Tax Credit Payment? Take Our Poll
August 13 is the second payment day for those receiving the child tax credit. The American Rescue Plan expanded the Child’s Tax Bracket for the year 2021, providing qualified American families with more generous benefits and monthly payments. This includes up to $300 per month per child ages 6 and below, and up to $250 per month per child ages 6 to 17. In total, families can receive up to $3,600 per child under 6 and up to $3,000 for those ages 6 to 17 — an increase of $1,600 and $1,000 respectively from 2020. Additionally, the enhanced child tax credit allows 17-year-olds to also be included in receiving the benefit this year.
Take Our Poll: Are You Spending Your Child Tax Credit?
A new study from Ramsey Solutions found that “70% of qualifying parents say they are afraid to spend the child tax credit money from the new monthly payments because they don’t know how it will impact their income taxes when they file next year.” “Tax hesitancy” has prevented most parents from the lowest-income households to get their payment. This is because most of these families do not file with IRS and therefore are not on record with the government. Aside from the possible shame of not filing their taxes, these parents also fear that their family will hit a benefit “cliff,” which will make them ineligible for other benefits if they were to sign up for the child’s tax credit.
“Objectively, there’s no validity to the benefits cliff of benefit loss,” said Darren Warren, Co-President of Community Change in an interview with CNBC. “There’s so much money… It’s just sitting there on the table.”
Weigh In: If You Get a Child Tax Credit, Will You Use the Money?
Additionally, Warren stated that the enhanced child’s tax credit “is not a scam.” “It’s actually their own money coming back to them to support their kids.”
So, what’s your stance on the expanded Child Tax Credit? Should you be spending it, setting it aside or simply opting out? Give us your take by answering our latest anonymous poll.
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Last updated: August 13, 2021
This article originally appeared on GOBankingRates.com: Are You Actually Spending Your Child Tax Credit Payment? Take Our Poll
