The proposed stimulus package calls for giving families $3,600 per child under age 6, and $3,000 per child for older minors including those age 17. The one-year change would also make the child tax credit fully refundable. As a result, parents who currently receive no credit or a reduced credit due to having little to no income would become eligible for the money.
The full credit would be available to individuals with up to $75,000 in adjusted gross income, heads of household with up to $112,500, and joint filers with up to $150,000, based on 2019 or 2020 tax filing information. It would phase out at $200,000 for individuals and $400,000 for joint filers.
The proposal would also make it so that payments could be paid to families monthly instead of having to wait for the money until the end of the year when they file their tax returns.
The bill would make it so families receive up to $300 per month per child under 6 and $250 per month per child ages 6 to 17.
The monthly payments would not start until July because the IRS would need about five months to get its systems up and running
The tax effect, if the above is passed, would be simple. Your refund would be less for the amounts of the prepaid Child Tax Credits. All of the above is speculation based on a proposed Bill.
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