TAMPA, Fla. (Cap News Services/WFLA) — Millions of Florida families will start receiving payments on Thursday as part of the American Rescue Plan’s child tax credit program, which provides families $250 to $300 a month per child until the end of the year.
The American Rescue Plan increased the child tax credit from $2,000 per child to $3,000 for children ages 6 through 17. The credit is $3,600 for children younger than 6.
An estimated 3 millions families in Florida will receive the payments.
“This is transformational tax relief to hard working parents,” Sean Shaw with People Over Profits said.
Families will receive half the money over a period of six months. They will get the remainder on their 2021 tax return.
In order to receive the full credit, joint income households must make less than $150,000 and heads of households have to make less than $112,500. Singe-parent households have to bring in less than $75,000.
“For so many working families – it may be insignificant to others – but to them, $250 or $300 a month is extremely important,” Pastor John Newman from The Sanctuary at Mt. Calvary in Jacksonville said.
The stimulus will inject $150 billion into the economy nationwide. It’s estimated the money will raise 270,000 Florida children out of poverty.
“And what’ll that mean? It’ll mean we’ll cut child poverty – possibly as much as in half,” said U.S. Rep. Darren Soto, a Florida Democrat who represents part of the Tampa Bay area.
Families can opt out of the monthly payments if they’d rather receive a lump sum credit on their 2021 income taxes.
“Families need to think about whether, right now, they have the income that is needed to pay for their basic necessities,” former Congresswoman Debbie Mucarsel-Powell, D-Fla., said.
The Biden Administration and Democratic lawmakers are hoping the new child tax credit formula won’t be a one-off occurrence. The American Families Plan would make the changes permanent.
More information about the American Rescue Plan Child Tax Credit is available on the White House website.