WISCONSIN (NBC 26) — More money is headed into the bank accounts of millions of parents this week.
Starting Thursday, 39 million families are expected to receive monthly checks as part of the child tax credit.
"Will be a very welcome and received benefit to help offset care, costs for tax payers families in this still difficult time,” said Mark Steber, Jackson Hewitt Chief Tax Information Officer.
Payments will be monthly with the final one scheduled for December.
Parents with children five and under are set to receive $300 per month and those with kids six through 17 will receive up to $250.
The other half of that credit can be claimed when filing income taxes for next year.
However, not all families will get a payment.
“So lots of money coming, coming very soon but not for everybody. There will be pocket of tax payers who either did not file a tax return in 2020 or 2019 or have not historically had to file but perhaps now qualify for this program or they didn't register under the economic impact program. A lot of reasons why you might not get your money,” Steber said.
Steber also goes into further detail to explain how the enhanced child tax credit could work for families who are separated and divorced.
Watch to learn more:
Other tax experts say families earning above a certain amount might want to consider not taking the payments.
"Families earning over about 112,500 for single households or head of house holds and joint families making more than 150,000 dollars are eligible for a partial credit between 2,000 and 3600 depending on your income level and how old your child is,” said Garrett Watson, the Senior Policy Analyst for the Tax Foundation.
Watch below as Watson explains below further details for those families with a higher income:
For families who will be taking the payments, the money should come through in just a couple days.
