Child tax credit at work in Delaware

Delaware State News
Posted 7/15/21

DOVER — More than 100,000 families in Delaware will get checks in July, as the federal government doles out child tax credit monies.

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Child tax credit at work in Delaware

Posted

DOVER — More than 100,000 families in Delaware will get checks in July, as the federal government doles out child tax credit monies.

That will invest more than $42 million to help 169,000 children in the First State, according to the White House, which issued fact sheets for every state as payments began rolling into bank accounts this week.

Here’s how it works:

  • Starting Thursday, eligible families began receiving monthly payments of up to $300 for every child under 6 and $250 for every child 6-17.
  • Eligible families will get the full credit of $3,000 to $3,600 per child if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called head of household).

To qualify, families must have:

  • Filed a 2019 or 2020 tax return and claimed the child tax credit on the return or given their information in 2020 to IRS to receive the economic-impact payment using the “Non-Filers: Enter Payment Info Here” tool.
  • A main home in the United States for more than half the year or have filed a joint return with a spouse who has a main home in the United States for more than half the year.
  • A qualifying child who is under 18 at the end of 2021 and who has a valid Social Security number.
  • Made less than certain income limits — households earning less than $75,000 for single filers, $112,500 for heads of households and $150,000 for joint filers.

U.S. Sen. Chris Coons, D-Del., applauded the expanded credit, made possible by the American Rescue Plan, which the senator voted for in March.

“Today represents a historic investment in our kids, our families and our future,” he said. “The expanded child tax credit will provide direct monthly payments to hard-working families up and down the First State, who are struggling to afford health care, housing, groceries and child care. I am proud to have supported this expansion that will deliver one of the most significant reductions in child poverty in history.”

Families are encouraged to visit the IRS website to ensure they receive their checks. Most families who are eligible will not need to do anything to receive these payments; IRS will use the information it has on file to automatically deposit the funds into their bank account or mail a check.

Previously, families would receive the child tax credit once a year. This year, IRS will pay half the total credit amount in advance as monthly payments. Families will claim the other half when they file their 2021 income tax return. These changes apply to tax year 2021 only.

For more information on the payments, visit here.