SALT LAKE CITY (ABC4) — The U.S. Department of the Treasury said 39 million families are set to receive monthly child payments beginning on July 15, and local tax experts said that means thousands of Utahns will reap those benefits.
They told ABC4 if you have already filed your taxes, you are set and will receive these advance monthly child tax credits, and it could mean up to $1,800 per child by the end of the year.
“The economic impact on Utah families is probably going to be pretty positive,” said Commissioner of the Utah State Tax Commission John Valentine.
The economic impact is $110 billion, but President Joe Biden said it will cut child poverty in half.
“I also think we need to give ordinary folks a break, a tax break to help them with the cost of raising their kids,” said Biden.
The boost to the child tax credit, a part of the American Rescue Plan, gives eligible parents a total of $3,600 for each child under 6 and $3,000 for each child under age 18 for 2021.
Around 90% of families with children qualify according to the Tax Policy Center.
“The federal government made it very clear in the American Rescue Plan of 2021 that this advance payment in this higher amount is for one year only,” said Valentine.
Valentine said from July through December, the advance child tax credit will be paid out. The rest will come back to families on their 2021 tax returns.
With Monday being Tax Day, you must either file for an extension or have filed your 2019 or 2020 to receive the child tax credit.
Valentine said you are still in luck if you miss Tax Day.
“Even if you have not filed a return, it does not necessarily mean you do not qualify for the credit because the credit will still be paid even if you don’t have the requirement to file a return,” said Valentine.
Payments will be disbursed through direct deposit, paper check, or debit cards, and will stop at the end of the year if Congress does not re-authorize them.
Biden said he wanted to do this to get America back on track.
“This tax cut sends a clear and powerful message to American working families with children, help is here,” said Biden.
Valentine told ABC4 this is great news for Utahns because of the number of kids in Utah.