More than 900,000 Kentucky families eligible for payments

(The Center Square) – In less than a month, hundreds of thousands of Kentucky families will be eligible to receive monthly payments for each child in their household.

The monthly payments are part of the revised Child Tax Credit Congress passed as part of the American Rescue Plan Act. For this, lawmakers expanded the credit from $2,000 per child to $3,600 for each child under 6 years of age and to $3,000 for kids between 6 and 17 years of age.

According to the Kentucky Center for Economic Policy, about 929,000 children live in families that qualify for the credits. Families that qualify for the full amount are married couples earning less than $150,000 or heads of households who get less than $112,500.

Families making above those thresholds will be eligible for reduced credits.

In addition, families will now be able to get up to half of their credit as monthly advanced payments or they can claim the full amount as a tax refund. The Internal Revenue Service will create portals for taxpayers to either sign up for the monthly payments or to defer the entire credit until after they file.

Those opting to receive the monthly stipend will begin receiving them on July 15.

The IRS will also set up a site enabling families that do not meet income thresholds to file taxes to also receive the tax credit.

Dustin Pugel, a senior policy analyst for the center, said in a statement Congress made “transformational” changes to the tax credit program.

“The American Rescue Plan Act’s improvements to the CTC will make it easier to afford housing, food, clothing, health care and child care, which research shows make a huge difference in the wellbeing of children on many levels,” Pugel said.

However, Pugel added that he wants to see the program continue past this year.

“(I)t would be a tragedy if this vital program ends in December,” the analyst said. “Congress should act to make the expansion permanent, and must avoid pulling the rug out from under Kentucky kids by letting the improved CTC expire in 2022.”

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