Stimulus update: Here’s how parents can get $3,600 per kid in one lump sum – rather than monthly payments
PARENTS can receive their $3,600 child tax credit aid in one lump sum rather than monthly payments.
Americans who would prefer to cash in the large check all at once can receive it with their 2022 tax refund.
Once the IRS opens its portal on July 1, people can change their preferences of how often they receive the cash.
For those who have had a baby this year or have gained a qualified dependent, the portal will also give you the option of adding this in to receive the correct amount of cash.
However, if you do not update your information and file your taxes before May 17, then you will automatically be set to receive the monthly checks.
Families who qualify for the credit can receive $3,600 for children 5 and under, $3,000 for children under the age of 17, and may qualify for a partial payment for those older than 17.
President Joe Biden has expressed that he would like to extend the child tax credit as part of his American Families Plan, but that extension would need to come in a separate bill and it would need to pass Congress.
"The American Families Plan puts money directly into the pockets of millions of families," Biden told Congress during his Wednesday speech.
"Together, let's extend the Child Tax Credit at least through the end of 2025."
As of now, the extra child tax credit will expire at the beginning of 2022 unless Congress moves to extend it.
Biden's American Families Plan also includes plans to provide free, universal pre-school for 3- and 4-year-old children, free community college for two years, and free school meals to children from low-income households
The plan would be paid for by hiking taxes for the US' top one percent of earners, in keeping with the president’s vow not to raise taxes on those making less than $400,000 a year.
The top tax rate for America's most wealthy will be raised to 39.6 percent.
Capital gains tax will also be raised to the same percentage for households making more than $1 million, and an estate tax loophole will also be closed.
While Democrats do hold a narrow majority in both the House and the Senate, Republicans have indicated that they will not support hiking taxes on the wealthy.
It's currently unclear how the White House plans to pass the American Families Plan, though Biden's coronavirus rescue plan was signed into law with no Republican support.
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