Qualifying families began receiving monthly payments July 15 through the end of this year as part of an expanded Child Tax Credit. Nearly all families should get their Child Tax Credit automatically with no further action required.
While the credit is only currently in effect until the end of the year, President Joe Biden has expressed interest in extending it until 2025. Congressional Democrats, as well as Treasury Secretary Janet Yellen, have expressed a desire to make the tax credit permanent.
How Much is the Tax Credit?
The expanded Child Tax Credit was part of the American Rescue Plan passed by Congress in March. It is available to all New Jersey families with children under 17 years old that earn $150,000 or less for a two-parent household and $75,000 or less for a single-parent household. Families with children under six years old will receive $300 payments and families with children between six and 17 years old will receive $250 payments.
Families can access the remaining boosted Child Tax Credit when they file their 2021 tax return.
Families will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for people who are married and filing jointly.
Qualified parents must file a tax return with the Internal Revenue Service (IRS) or sign up through the IRS Non-Filer Tool to become eligible for the payments. For more information, visit ChildTaxCredit.gov.
How Do Recipients Receive Their Payment?
Nearly all families should get their monthly payments automatically beginning July 15 with no further action required. If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.
Families who got their refunds from the IRS through direct deposit will get these payments in their bank account around the 15th of every month until the end of 2021. People who don’t use direct deposit will receive their payment by mail around the same time.
“Politicians can be prone to hyperbole but not here. This child tax credit will remake tens of millions of lives for the better,” said Rep. Bill Pascrell, a senior member of the tax-writing House Ways and Means Committee, which helped write the credit. “Included in the American Rescue Plan, the advance child tax credit is one of the most significant provisions of legislation Congress has passed in generations to fight child poverty.”
“I am committed to making New Jersey more affordable for families across the state. This expansion of the Child Tax Credit is a landmark tax cut for middle class and working families across New Jersey and the entire country,” commented Rep. Mikie Sherrill. “I fought hard to include this provision in the American Rescue Plan because I know how crucial it is to offer this kind of direct aid and support to families.
“Helping our families and children get back to life after the pandemic, lifting children out of poverty, and clawing more of our federal tax dollars back to Jersey, should not be a Democrat or Republican issue,” stated Rep. Josh Gottheimer.
“The expanded Child Tax Credit will help New Jersey families pay for food, housing and other necessities during this global pandemic,” said U.S. Rep. Donald Payne, Jr. “It can help thousands of district families survive during these difficult times…I want all eligible New Jersey parents to take full advantage of this credit.”