It is estimated that more than 35 million families will benefit from this credit scheme.
PROVIDENCE, RI (WLNE) – Relief payments began to hit the pockets of more than 35 million families on Thursday, as part of the first payment from the child tax credit plan.
The IRS has estimated that this first round of payments across the country will cost $ 15 billion.
The US Treasury adds that nearly 173,000 Rhode Island children are qualified to receive this money at a cost of $ 43 million.
Jeffrey Massey of Massey and Associates in Warwick says this credit scheme is absolutely historic for two main reasons. One being the overall price, on the other hand, because it is expected to make one of the biggest differences in child poverty the nation has ever seen.
This plan increased the credit from $ 2,000 per child to $ 3,000 for children more from 6 years old and from $ 2000 to $ 3600 for children under the age of 6. In addition, the age limit has been raised from 16 to 17 years.
Massey says many are preparing to spend this money in different ways. Some plan to save it for a rainy day or a vacation. Others say they plan to buy healthier groceries for their families.
The Biden administration says this could potentially lift 50% of families out of poverty.
Unlike the issues many face getting their stimulus checks on time, Massey believes that since the IRS has been preparing for these payments for some time, there should be fewer delays.
“I think if you don’t have a check in 2-3 weeks you would want to review this and you can do it just by going to irs.gov,” Massey advises.
The relief is part of President Joe Biden’s US bailout that was passed in March, totaling $ 1.9 trillion.
For more information on the Monthly Child Tax Credit, please click here.