Families prepare for child tax credit advance
TOLEDO, Ohio (WTVG) - Families are getting ready to see an extra check come their way or an additional direct deposit this summer with new child tax credits coming earlier than ever.
While it might change how families figure their taxes, it might also change what some families have the ability to do.
COVID hit many families in so many different ways. One of the ways out of it will be new direct payments for about 92% of American families.
“It just will be a great assistance for my family,” said Ohioan Myesha Crowe.
Crowe and her family will be one of the families seeing an increase and an advance on the child tax credit. Typically, that credit was $2,000, but now it’s $3,000 for a child 6-17 years and $3,600 for a child under 6. And the federal government will give families half that money in monthly checks starting in July.
“There are times where it feels like I’m paying a second mortgage for my children to be in childcare where $700 a month is just too much. But when you think about the future and early development of your children, it just feels like the investment is mandatory,” said Crowe.
“This will also help some of our families who were on kind of the verge. And I think that particular population is sometimes overlooked because they think or people may think that they are doing OK. But they’re not doing ok,” said Tanese Horton, with the Centers for Families and Children in Cuyahoga County.
Horton said COVID took away places some families relied on, and between $250-$300 extra per month, per child, could go a long way. If you take the money now, that will lower the credit you get when you file your taxes in 2022.
The government is allowing people to opt-out of the payments and keep the full credit for tax time. Each family will need to make its own decision as families have plenty of those to make.
“The big ability of this will assist our families so they don’t have to make a decision as to whether they should bring their child to school or not. Whether they eat or not,” said Horton.
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