WYANDOTTE, Mich. - It's a big day for Michigan families as July 15 is the first monthly deposit for the expanded child tax credit.
Each family's incoming checks could look a little different depending on how much one makes and the age of their children. But money could arrive in the tune of $250 - $300 per child.
That will be the first of six monthly payments that will be delivered on the 15th of every month through December. Half of the money will arrive in periodic installments while the rest will be claimed in one's 2021 taxes.
The expanded child tax credit is among the more profound pieces included in the massive relief package approved earlier this year. Those eligible will receive up to $3,600 per child. About 36 million households are expected to see some kind of payment.
The measure expands the yearly tax credit from $2,000 per child to $3,000 for older children and $3,600 for children under the age of 6.
Here are a couple of calculations to give people an idea of what they could expect:
- If a married couple is filing jointly with an income of $75,000 and has one kid between the age of 6 and 17, they'll get $550 a month for a total payment of $3,300 after the 2021 tax return
- If a single head of household with an income of $125,000 has three kids between the ages of 6 and 17, they'll get $1,598 a month for a total payment of $9,588 after the 2021 tax return
- If a married couple is filing jointly with an income of $65,000 and has six kids between the ages of 6 and 17, they'll get $3,300 a month for a total payment of $19,800 after the 2021 tax return
"You only need five things to get this money, which is your money that you have coming to you as a parent," said Congressman Andy Levin (D-Bloomfield Township). "You need a mailing address. You need an email address. You need your social security number or ITIN. You need your social security number for you kid. And if you want to get a direct deposit, you need to give your bank account number."
Levin was part of a roundtable discussion earlier this week on the expanded credit. Another discussion will be set for Thursday at 9 a.m. between Lt. Gov Garlin Gilchrist, Congresswoman Debbie Dingell (D-Dearborn), and several other officials in Wyandotte.
It's also going to be a significant lift for those impoverished in Detroit. According to Mayor Mike Duggan, it could lift at least 20,000 kids out of poverty.
Detroit single heads of households making less than $112,000 a year or married couples making less than $150,000 will get the full tax credit if they claim child dependents.
Singles making up to $200,000 and married couples up to $400,000 will get a partial tax credit.
"So more than 90 percent and I think it's going to turn out to be more than 95 percent of families with children are going to be eligible," Duggan said.
Duggan reiterated that the tax credit does not count as income against public benefits. If you owe the IRS money, they will still send you a check. And even if you're pregnant or in the process of adopting, you can still get the cash.