It is not often (or ever) that working families receive a windfall. Nevertheless, that is exactly what the enhanced, Child Tax Credit as part of the American Rescue Plan is. Moreover, it is a significant chunk of money for many families to receive on a monthly basis. If you qualify for the payments start thinking now about what to do with the money. Without a plan for spending, this money might be spent before you realize it!
The credit amount will be made through advance payment starting July1, 2021 ending December 31, 2021. This tax law change can be a boon to struggling families. Families can receive financial assistance now, rather than waiting until the 2022 tax filing season to receive the Child Tax Credit benefits. Please try to be mindful of this money. Start with a plan. A spending plan, also called a budget, is simply a strategy you create that helps you meet expenses. A good spending plan can keep you from spending money without thinking.
The credit is now extended to Puerto Rico and the U.S. Territories. For the first time, families residing in Puerto Rico and the U.S. Territories will receive this vital financial assistance to better support their children’s development and health and educational attainment