NASHVILLE, Tenn. (WTVF) — The rebound continues for families across the country. Now, a new tool from the IRS is helping lower income families make sure they get the Child Tax Credit.
People who don’t need to file a 2020 tax return, didn’t file or don’t plan to and have a main home in the U.S. for more than half a year should use the tool to report their qualifying kids.
On July 15, millions of families can expect to see the first payment. Last week, the IRS started sending out letters to parents who are eligible.
The IRS will add other tools this month -- one to help families see if they can get advanced payments and another to allow parents to opt out and get the money all at once next year.
Financial advisor Rick Bloom talked about whether there is a strategy to choosing the monthly payments versus waiting and getting a lump sum with your tax return.
“I think for most people they ought to take their money as soon as they can get it. There's no disadvantage to this. So, if you're eligible you should take advantage of it. It's plain and simple,” said Bloom.
For parents who are unfamiliar with this enhanced credit, it was part of the American Rescue Plan. For 2021, the credit increases to $3,000 from $2,000 per-child under the age of 17 and gives an additional $600 benefit for children under the age of 6.
What is the rebound?
As Middle Tennessee works to rebound from the impact of the Coronavirus, we want to help. Whether it's getting back to work, making ends meet during this uncertain time, or managing the pressure, we're committed to finding solution. In addition, we want to tell your stories of hope, inspiration, and creativity as Middle Tennessee starts to rebound.
Find more in the sections below
More Safely Back to School storiesHow schools are changing, and what you can do to help your child get the most from their education, in-person or virtual
Getting Back To WorkLearn about the latest job openings, how to file for benefits and succeed in the job market.
Making Ends MeetFind help on topics from rent to food to new belt-tightening techniques.
Managing the PressureFeeling isolated or frustrated? Learn ways to connect with people virtually, get counseling or manage your stress.
Doing What’s RightKeep track of the way people are spending your tax dollars and treating your community.
State of EducationFind ways to cope with the new normal around schools and celebrate students’ success in the age of Coronavirus.
We're Open Y'allSupport local businesses doing their best to stay open and serve their customers during Covid.