photocredit: gettyimages
First child tax credit payments have been sent out and here's what you need to know.
Tens of millions of families have been sent the first payment of the expanded child tax credit. The credit will provide them with extra funds each month through the end of 2021 along with a tax break next year. These payments were approved as part of the $1.9 trillion stimulus package that President Biden signed into law in March. The first installment totaled $15 billion.
These offer the greatest benefit to low-income families, cutting child poverty in half but the extra cash will go to better-off American families. The fill enhanced credit will be available for heads of households that earn $112,500 and joint filers that make up $150,000 a year. The credit then plateaus at $2,000 per child and phases out for single parents that earn more than $200,000 or for married couples with incomes above $400,000.