Parents To Receive Monthly ‘Child Allowance’ Payments From IRS – See How Much You’ll Get
Thanks to the recently-passed American Rescue Plan Act, if you have kids, you might qualify for a new Child Tax Credit this year -- and the IRS could even send you 'child allowance' payments later this year.
When I first saw online that the IRS could indeed send you money for your kids here in Minnesota, I thought sure it was one of those clickbait stories. Or maybe a scam that tries to steal your information once you click on the link in the story.
But, no, it's true: The IRS could very well send you payments of up to $300 a month for each of your kids, starting in July of this year. According to this Kipplinger's story, it's all part of the American Rescue Plan Act (ARPA) that was signed into law earlier this month. It's actually a temporary increase in the 2021 child tax credit, from $2000 to $3,000, or $3600 if your kids are under the age of 6, and if you qualify, the IRS could begin sending you the difference in monthly payments of $300 for six months per child under the age of 6, and $250 per child between ages of 7 and 17.
However, not just EVERYONE will be eligible for those new monthly payments from the IRS. (That would be too easy!) According to Kiplinger's:
Some families won't get any credit (or monthly payments) at all. That's because the credit is reduced – and possibly eliminated – for people with an income above a certain amount. In fact, there are two "phase-out" rules in play – one just for the extra $1,000 (or $1,600) amount and one for the remaining credit.
So, as you might guess, that makes trying to figure out if your family qualifies for the temporary tax credits just a wee bit difficult-- and WAY above my pay grade. (Especially since I don't have any kids at all...) Luckily, the gang over at Kiplinger's also has a handy Child Tax Credit Calculator, where you can enter your information (anonymously, of course) and it will then tell you which increased tax credits you could be receiving. Click HERE to check it out.
As Kiplinger says, not everyone will qualify for the additional payments. Like THESE celebrities, I'm guessing. While they may not live here in the Land of 10,000 Lakes anymore, they WERE born here, but their impressive incomes now would probably mean they're not eligible. Keep scrolling to see how much they're worth!