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Today, June 21, President Joe Biden announced Child Tax Credit Awareness Day. This is done to ensure parents are aware of the historic expansion of the American Rescue Plan Child Tax Credit.as well as the various ways it will benefit families.
On this day, the White House encourages elected officials, child support organizations, and faith-based organizations to help low-income families – who are not normally required to file taxes – to use the new tax registration tool. Child Tax Credit.
Among the supports included in the president’s plan are $ 15 billion for the Child Care and Development Block Grant, a historic expansion of the Child and Dependent Care Tax Credit, and six months of employer support. of small and medium businesses that offer paid sick and family leave during the pandemic through the Paid Leave Tax Credit.
Expansion of the Child Tax Credit
The American Rescue Plan made a historic expansion of the Child Tax Credit. This year, for most families, the Child Tax Credit increases to $ 3,000 for each child between the ages of 6 and 17.; and $ 3,600 for each child under the age of 6, according to a White House statement.
For example, a married couple making less than $ 150,000 with two children under the age of 6 will be eligible for a Child Tax Credit of $ 7,200 in 2021, at least $ 3,200 more than they would have received prior to the American Rescue Plan.
The Child Tax Credit tax deduction is generally available only when you file your taxes, but now child tax credit payments will be made monthly for the first time, starting in July.
This means that the support will reach the families sooner, and they will be able to count on it every month.
To help with the costs of raising children, families will begin receiving monthly payments of up to $ 250 for each child ages 6 to 17 and $ 300 for each child under the age of 6.
Child Care and Development Block Grant
The Biden Administration has also provided unprecedented funding to states to make expansions and improvements in child care. The $ 39 billion investment of the American Rescue Plan in child care is historic, but in addition the government has been encouraging state and local governments to fund quality child care options for parents.
Tax credit for paid license
This refundable tax credit offsets the cost of employers who voluntarily provide their workers (who are eligible) with paid sick or family leave, either for the employee’s own health needs or to care for family members.
With this support, employers with fewer than 500 employees can receive up to $ 17,110 to give employees up to 10 days of leave for paid sickness and up to 12 weeks of paid family leave, from April 1 to September 30, 2021. Approximately 6 million companies and more than 30 million workers are eligible for this credit.
–You may also be interested in: The calculator that tells you how much money you would receive as of July 15 under the extension of the “Child Tax Credit”
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.