Where’s my child tax credit payment?
Some families have already started seeing those child tax credit payments
KNOXVILLE, Tenn. (WVLT) - Families in Tennessee have started receiving their monthly child tax credit payments, part of the American Rescue Plan. Low to middle-income parents can expect to receive $3,000 for every child ages 6 to 17 and $3,600 for every child under the age of 6. That breaks down to $250-$300 per month.
If you filed a 2019 or 2020 tax return you should automatically receive your payments. If you haven’t gotten yours you can check on the status through the IRS Update Portal.
Financial expert, John Vandergriff, said it’s important to think about how you’re using this money.
“Back to school is coming so if you don’t have extra money hanging around you could use it in that fashion. If you wanted to save it up towards the end of the year for Christmas expenses that would be a great way to use it as well,” Vandergriff said. “Or if you don’t really need this money this would be a good way to kick start or add some fuel to college savings or future education savings by putting this in an account and saving it for the future.”
Vandergriff said it may also be more beneficial to defer the monthly payments and claim the credit the next time you file taxes. If you tend to owe money to the IRS, the child tax credit can offset the amount they have to pay. You can also use it to make plans to make a large purchase. You will have to unenroll on the IRS’s website if you choose to defer.
These payments start to decrease for higher-income households, starting with single filers making more than $75,000 and joint returns of more than $150,000. A portion of the credit would still be provided to families with a single parent earning more than $200,000 or married couples earning more than $400,000.
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