Child Tax Credit could benefit many local families
After struggling through a global pandemic that left many wondering how to put food on the table and take care of basic household needs all while trying to manage their children learning remotely from home, some relief is in sight for local families who need help.
As early as July 15, an important tax credit could kick in benefiting many including new mothers. The new Child Tax Credit will provide $3,600 per year, $300 per month per child for parents making $75,000 or less.
"We are in favor of the Child Tax Credit. We could use this to help pay for next year's school expenses that we paid for in the past school year and get caught up on bills," said Jamie Wood, a single mother from Joliet."
Wood said she is fortunate to be a stay-at-home parent, "so childcare was not an issue." Her sons are 13 and 14 and attend school in Plainfield. "They were remote a majority of the year, and then had option in-person hybrid classes during the third quarter."
Congressman Bill Foster (D-Ill) of the 11th District, which includes portions of Bolingbrook, Joliet, New Lenox and Plainfield, recently joined Congressman Sean Casten (D-Ill), of the 6th District, and Congresswoman Lauren Underwood (D-Ill), of the 14th District, to discuss the Child Tax Credit and outlined how it will benefit more than 2.5 million children, and lift 153,000 children out of poverty across the state.
"This is one of the most impactful things we have done since President Biden was sworn in," Foster said. "This program was designed specifically to help new moms."
The $300 per month per child payment will "start to flow in July for an awful lot of families who are trying to choose between rent and diapers and a health care visit," Foster added. "This is intended to not have them have to make that choice. It is transformative. It's really, really necessary for those of you who meet those eligibility requirements.
"This money is going to make a big difference in the lives of families across our state. Hard working parents and families need to be aware of and fully informed as to how to receive this tax credit – we need to make sure Illinois families don't miss out."
According to the IRS website, the Child Tax Credit will help many families get advance payments of the credit starting this summer. The IRS will pay half the total credit amount in advance monthly payment beginning July 15. Families will claim the other half when they file their 2021 income tax return and these changes apply to tax year 2021 only.
To qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:
• Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
• Given us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
• A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
• A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
• Made less than certain income limits.
"This life-changing Child Tax Credit will provide critical relief to nearly 75 percent of children in the 14th District," Congresswoman Underwood said. "More money in the pockets of northern Illinois parents means more money for day camp, childcare, groceries, even family vacations or fun summer activities. If you haven't already, I encourage parents to sign up today and be on the lookout for relief starting July 15."
Jeremy Brzycki lives in Joliet with his wife and two boys, who are 8 and 5. He said he's fortunate that his job offers flexibility for him to work from home. "So childcare has not been as much of an issue for us as it has been for other families," he said.
"However," Brzycki said, "the Child Tax Credit will certainly help to fund my children's education and help pay for other expenses that have increased since the pandemic began."
Casten said the Child Tax Credit is "one of the most impactful things we have done as members of Congress."
For more information about the Child Tax Credit and how it works, visit the IRS website at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.
Source: Rex Robinson