Starting in July, the child tax credit will comeback to parents on a monthly basis.

Usually you wait until you file your tax return to get your child tax credit. Later this year, you will start seeing that tax relief in the form of a monthly payment. According to a Times Union story, the IRS will start making a $250 monthly payment per dependent child to parents starting in July. The payments will go to single filers making up to $75,000 and joint filers up to $150,000. For children 6 and under, the payment will be $300 per child.

The Times Union says the monthly payments will replace the tax credit you would usually file on your 2021 tax return. The credit used to be $2,000 per child, but for 2021 it was recently adjusted to $3,000 per child, and $3,600 per child 6 and under. So if you have children, instead of claiming these credits on your 2021 tax return, you will now see these monthly payments instead for this year. At this point, it does not seem the payments will go beyond 2021, but the Times Union story does say efforts are underway to make the expanded $3,000/$3,600 credits permanent.

Overall, this is good news for parents and ultimately these are funds that would ultimately get back to moms and dads at a later date. Now, they will get them sooner. But, this is also one of the crazy things that drives us all nuts about taxes. Even before the pandemic, if parents are getting the credit, why not just deduct less from paychecks? Lets just eliminate the middle man and let parents keep more of their paychecks when they come in! I guess that maybe makes just a little too much sense. Either way, its great news for Capital Region parents that they will see tax relief sooner rather than later as they get ready to navigate the back end of another crazy year.

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