ROCKFORD, Il. (WTVO) — Many American families began receiving the first Child Tax Credit payments today, which are part of the Biden administration’s pandemic relief plan.
Kaci Woodward, a single mom of 4, says the Child Tax Credit will help her family, especially after a rough financial year due to COVID-19 shutdowns.
“The Child Tax Credit is just going to be huge [to] help with bills and everything, because, even being a single mom of four kids, I don’t get help from the State. I don’t get EBT (Electronic Benefit Transfer) or anything,” she said.
Eligible families will receive up to $300 a month per child under the age of six, and $250 a month for each child between the age of six and seventeen.
While some families welcome the help, others, like the Shumaker family, said they opted out.
“So, it was just a long, tricky process that you had to keep verifying and continually checking emails and whatever computer things came through,” said Jeanine Shumaker.
“It’s not necessarily free money,” warned Certified Public Accountant (CPA) Jim Tures. “You would owe tax, except for this credit. It’s just a reduction of tax.”
“If you do take the refund, half of that $3,000 [a year] is going to be paid early, between now and the end of the year, and that would only leave a $1,500 tax credit to show as a refund on the tax return,” he said.
Woodward said she did what she thought was best for her family, after evaluating the pros and cons.
“I found out it did affect our tax credit next year. It will be less on what I get on my taxes. I mean, it will affect that, but it’s way more beneficial for me to have it now,” she said.
The payments are set to expire after this year, but President Biden is already proposing extending the monthly payments through 2025.