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Rep. Darren Soto
Expanded child tax credit refunds from the federal government began reaching parents with minor children last week.
The annual tax credit is now $3,600 for children younger than age 6 and $3,000 for children ages 6 to 17. Eligible families are getting $300 a month for each child under 6 and $250 per child older than that.
Individuals making $75,000 or less, and couples making $150,000 or less, qualify and can also opt out of the new monthly payments and instead get one-lump sum next year.
Higher-income families with incomes of $200,000 for individuals and $400,000 for married couples can still receive the previous $2,000 credit.
The federal program is aimed at helping both middle-class and lower-income families get ahead as the cost of living rises in the post-pandemic economy.
U.S. Rep. Darren Soto, D-Kissimmee, told the News-Gazette this week this credit will give working families needed financial flexibility.
“When you’re talking about poverty in our nation, many in that group are children and single parents trying to get by,” Soto said. “These are working people and having an extra $200 to $300 a month per child can make a significant difference in their lives.”
The tax credit is part of the federal $1.9 trillion coronavirus relief package. The Biden Administration and Congressional Democrats like Soto are pushing for it to be extended through next year and ultimately made permanent.
“I’m proud to help working families who may not be able to make ends meet. These are hard-working Americans who are helping the fuel tourism and agriculture industries here in Central Florida,” said Soto, whose 9th Congressional District covers much of Osceola County.
Someone working full time at $15 per hour takes home roughly $25,560 per year (Florida, unlike other states, has no state income tax). A single parent with three minor children working that job is considered above the 2021 federal poverty guideline, which for them would be $21,960 annually.
“We have to help our fellow workers make a decent living when they’re working fulltime,” Soto said. “People working 40- 50 hours a week should be able to provide for their children and it’s getting harder and harder to do that these days.”
Despite those who decry the expanded tax credit and equate being poor with being lazy or void of moral character, Soto said most who qualify are workers. The money is aimed at helping children in the U.S. grow up in more financially stable homes, particularly in a nation with a declining birth rate, he said.
“When it comes to living in poverty, children aren’t culpable in any way. They’re just trying to grow up,” Soto said. “Without immigration our country would have a declining population. So we need to stand with families and make it easier to have children in our county. Our future depends on it.”
If you filed your 2020 taxes and the IRS already has your bank account information, the payments should be deposited directly into your account on the 15th of each month.
The Treasury Department estimates that 35.2 million families will receive payments in July.
Didn’t file taxes in 2019 or 2020? You might still be eligible for the credit and can apply here: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool.
The monthly payments system was adopted over the previous one-lump sums to help recipients with long-term budgeting.
You can opt out and instead get your one-lump sum after filing your 2021 taxes as in past years. Unenroll here: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal.
