Central Floridians who don’t make enough money to file an income tax return but who qualify for the child tax credit can sign up to receive advance payments on the IRS website this week.
Families can receive a 300 dollar a month credit for each child under 6 and a 250 dollar a month credit for each child aged 6 to 17 under President Biden’s American Rescue Plan.
Individuals who file an income tax return are automatically eligible to receive this advanced credit unless they opt out, choosing to receive one lump sum instead.
Low income families who don’t file an income tax return can register to receive this advanced credit starting this week on the IRS website.
UCF Economist Dr. Sean Snaith says this could help lift many of these families out of poverty.
“Those are the folks that lost their jobs, they weren’t able to sit at home and do Zoom meetings and still get a paycheck. So those unemployment rates are still elevated for people at those income levels. So this will provide some help as the economy continues to fully heal itself from the effects of the pandemic.”
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Snaith says the advanced payment option might be especially helpful for families who live paycheck by paycheck.
“Our bills don’t come in a lump sum. They come monthly. And so for the ability to get access to that money as the bills are coming in I think will be helpful for the many families who sort of live paycheck to paycheck.”
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The Biden administration estimates 90 percent of American families with children will qualify for this money automatically. The first advanced payments are scheduled for July 15.
For more information or to apply, click the link.
