With the expansion of Advanced Child Tax Credit payments, Congresswoman Jennifer Wexton (D-Va.-10th) hosted a virtual roundtable last week discussing the impacts for families in her district that includes Loudoun County.
On July 15, payments from the federal government began to be delivered to Americans helping to raise children.
The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 for children over the age of six, and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17, according to federal officials.
All eligible families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent.
Visit IRS.gov and search “Advance Child Tax Credit Payments in 2021” for details on how to qualify for payments.
“The expanded Child Tax Credit is a historic tax cut for working families that we passed as part of the American Rescue Plan,” Wexton in a prepared statement.
“Over 135,900 children in our district will benefit from this program, which will help families pay for child care and other expenses and enable parents to get back to work,” she said.
Heather Beardsley, president of the Hamilton Elementary Parent Teacher Association, and Elizabeth Coppage, a preschool teacher, both joined Wexton for the July 9 roundtable discussion.
Beardsley and Coppage, who are both parents, spoke about how the advanced CTC payments would ease financial anxiety for their families and help them more easily pay for things like child care, school fees and groceries, Wexton’s office stated.
“It really helps us feel more comfortable,” Beardsley said. “Not so strapped, not so stressed. It’s just one less worry.”
Coppage said with expenses for college in the future and school activities, the tax credit provides some financial flexibility for her family.
“With this child tax credit coming in, it’s really going to help us out,” Coppage said. “Our children can have opportunities that they wouldn’t have normally had and it’s going to help us long term.”
Kristina Hagen, Virginia campaign director for the Campaign for a Family Friendly Economy, and Emily Griffey, chief policy officer for Voices for Virginia’s Children, also joined the roundtable, sharing how their organizations are working to inform families about the expanded CTC payments and what this new program would do to lift up Virginia families from the pandemic and help working parents get back on the job, Wexton’s office stated.
The Internal Revenue Services will pay half the total credit amount in advance monthly payments that started on July 15. Americans will receive the other half after filing their 2021 income tax returns. These changes apply to tax year 2021 only.
According to the IRS, the advanced CTC payments do not qualify as income and so will not impact other benefits (like SSI, SNAP, TANF, WIC etc) that a family may earn.
Eligible Americans may be required to repay advance child tax credit payments back to the IRS if they are greater than the amount they are allowed on the 2021 tax return, the IRS states.
Officials said if any Americans qualify for the repayment protection, they will be excused from repaying some or all of the excess amount. Americans who do not qualify for repayment protection will need to report the entire excess amount on their 2021 tax return as additional income tax.
The additional income tax will reduce the amount of a filer’s tax refund or increase your total tax due for 2021, officials state.