On July 15, parents in California could be getting money from the federal government to help them bounce back from the pandemic and care for their children.
The child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously, children had to be 16 or younger.
Up to half of that credit will be distributed over the final six months of this year, meaning a typical parent of one kid over 6 can expect a $250 payment later this month as the first of six installments of the advanced payment of $1,500.
The Public Policy of California Institute estimates that the credit will cut child poverty in the state by a third.
Rue Gumunyu from Prime Tax Accounting joined Sonseeahray to explain what parents should know as the first payment date approaches.