ROCKFORD, Ill. (WTVO) — Families nationwide will soon receive monthly checks to help offset costs after a rough financial year during the pandemic.
President Joe Biden’s Child Tax Credit is set to begin payouts on July 15th, and while it could be beneficial to some parents, others are worried about the long-term effect on the nation’s economy.
The American Rescue Plan increased the overall Child Tax Credit to up to $3,000 for children 6-11, and an additional $600 for those under 6.
As a mother of two, Haylee Bahnick hopes the money will create a better future for her kids.
“We’re also, obviously, very grateful. We would’ve never gotten opportunities like this before to pay off some things, to have some opportunities for our kids,” Bahnick said.
All working families will get the full credit if they make up to $150,00 for a couple, or $75,000 a year or less as a single taxpayer.
Candace Antczak also has two children, although she has mixed emotions about the government giving out more money, after several stimulus checks.
“Temporarily, it’s nice, but I think in the long run we’re gonna be seeing something that might put us in a worse situation,” she said.
The Center on Poverty and Social Policy at Columbia University says the Child Tax Credit could cut child poverty by as much as 45%.
Bahnick hopes the money will alleviate some financial pressure on her family.
“We definitely wouldn’t have gotten to the place we are today without it, I can tell you that much,” she said. “So, we’d be a lot further behind. Typically, my husband and I don’t make a ton, so for us, to have the opportunity to say ‘yes’ a little bit more than ‘no’ [to our kids] is kind of a big deal for us.”
Taxpayers usually see the credit when filing income taxes each year, but this money will be given out as a monthly payment, starting in July.