DALLAS (CBSDFW.COM) – Another batch of federal stimulus checks is expected to hit bank accounts Wednesday, March 24, but there’s another direct payment coming to most North Texas families that could add up to even more money.
Along with $1,400 stimulus payments, Congress raised the 2021 Child Tax Credit in the latest relief package from $2,000 to $3,000 per child under the age of 18 and $3,600 per child under the age of 6.READ MORE: 2 People Found Dead Inside Abandoned School In Parker County
“This is historic and if it’s made permanent it becomes landmark,” said Chuck Marr, the tax policy director for the Center on Budget and Policy Priorities.
Marr said the expansion to the child tax credit will lift nearly million children out of poverty in Texas alone and cut the child poverty rate in half across the U.S.
Congress called for half the child tax credit to be paid in advance and be split into monthly payments starting in July.
The IRS director told lawmakers last week, the July deadline may not be possible as his agency is still processing stimulus payments and tax returns.READ MORE: Tony Evans Jr., Lancaster Football Player And University Of Wyoming Recruit, Killed In Shooting At Dallas Hotel
It remains unclear exactly when the payments will go out and how they will be split.
Monthly payments may prove to be too big of a job for the already stressed IRS.
Instead payments may be split into two to three checks and sent out between July and December.
Most middle-income families with kids will also benefit from the expansion.MORE NEWS: 11-Year-Old Fatally Shot By Child Who Found Gun In Vehicle At Dallas Walmart, Police Say
The full child tax credit will be available to individuals who earn up to $75,000 and couples earning up to $150,000 with a complete phased out for individuals earning $95,000 and $170,000 for couples.