The vast majority of American families with children will automatically receive up to $300 per month per child beginning July 15, the IRS and Treasury Department announced Monday.
ABC News quoted the IRS as saying that families who qualify for the Child Tax Credit, which was expanded as part of President Joe Biden’s $1.9 trillion American Rescue Plan, will receive monthly payments without taking any further action.
Initial eligibility will be based on 2019 or 2020 tax returns.
The changes increased the child tax credit from $2,000 to $3,000 for children over 6, and to $3,600 for children under 6.
Here on Guam, the Department of Revenue and Taxation is already talking with its federal counterparts to discuss the program’s implementation on Guam.
“So that’s really what is being referred to is that advanced child tax credit. In the American Rescue Plan Act of 2021, there was a provision or there were a few provisions that adjusted the child tax credit. We already began our discussions with the IRS in the last week regarding how the advanced child tax credit is going to be applied or implemented here,” DRT director Dafne Shimizu said in an interview with NewsTalk K57’s Patti Arroyo.
According to Shimizu, the ARPA allows for the insular areas to elect to do the advance child tax payment.
“Of course, we wish to do the advanced payment because, especially as I talk with Governor and Lieutenant Governor, our desire is to make sure that we can get to our taxpayers here on Guam and Guam residents as much money as possible, including these advanced payments,” Shimizu said.
She added: “So our intention is to go ahead and implement. We do not have the implementation plan yet done. We are still discussing with the IRS, but we’ve already opened up discussions with them on how this will be implemented for Guam and the other insular areas. And we’ll be able to provide more information, of course, as we work to get through those discussions.”
ABC News has quoted senior Biden administration officials as saying that 39 million households covering 65.25 million children will automatically receive the monthly payments via direct deposit, paper checks, or debit cards.
Along with the increased child tax credit amount, ABC News reported that one remarkable change is that the credit is now refundable and can be advanced, meaning families get checks throughout the year, rather than waiting until after filing taxes.
(with ABC News)