Expanded child Detroit tax credit payments start Thursday - here's what you need to qualify

Detroit Mayor Mike Duggan gave how-to instruction for applying for the chid tax credit on Monday. Duggan says it could lift at least 20,000 children out of poverty and many people don't even know that the money is available - and will start showing up in parents' bank accounts this week.

"That is significant," said Detroit father William Woods. "That will pull a lot of people ... it's not like they are taking anything away. You don't have to pay it back."

Woods has been looking forward to the expanded child tax credit and payday starts Thursday.

The measure was included in the latest COVID-19 relief bill expanding 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.

Woods and his wife will use some of the money to beef up college savings for his teenage daughter,  the oldest of his four children.

"If we budget it out right, we will get more bang for the buck so to speak," he said.

Detroit Mayor Mike Duggan getting the word out about the tax credit during a special address Monday.

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.

Half of the money comes through month payments starting this week- the rest coming when parents or legal guardians file their 2021 taxes.

"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.

"If you deliver your baby before the end of 2021 or if you adopt a baby this year, you're entitled to $3,600," Duggan said. "If you deliver that baby on December 31st, that baby comes with a $3,600 check."

Detroit dad William Woods says he is looking forward to the expanded child tax credit.

Detroit dad William Woods says he is looking forward to the expanded child tax credit.

Residents who did not file their 2019 or 2020 federal taxes could miss out, but the city is teaming up with a pair of non-profits to make sure they get squared away.

"These folks have got volunteers who are going to do your tax returns for free," Duggan said.

Related: Tax credit could take thousands of Detroit children above poverty line

You can make an appointment to file those old taxes by calling 211 or online at getthetaxfacts.org

More: File online yourself using United Way’s My Free Taxes myfreetaxes.com/
A helpline at 866-698-9435 available daily from 10a-10p for questions about software.

Watch Mike Duggan's presentation below.