West Virginia economic professor explains what child tax credit will look like this year

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FILE – This Wednesday, Feb. 13, 2019 file photo shows part of a 1040 federal tax form printed from the Internal Revenue Service website. On Friday, Aug. 21, 2020, The Associated Press reported on stories circulating online incorrectly asserting that Democratic presidential candidate Joe Biden’s tax rate on a family making $75,000 dollars a year would go from 12% to 25%. A current federal tax rate of 12% applies to families making up to $80,000, or individuals making up to $40,000. That would still apply under Biden, who has vowed publicly not to raise taxes on anyone making less than $400,000. (Associated Press)

BECKLEY, W.Va. (WVNS) — The Treasury Department announced beginning in mid-July, 39 million families will start receiving monthly child payments. Dr. Joshua Price, an economics professor, said while parents always received tax credits for their children, the amount was increased this year.

“You can receive monthly payments up to $250 per child between ages six-17 or monthly payments up to $300 for children under the age of six,” Price said.

Price said there are some income restrictions for the child tax credit.

“You would be eligible for the full credit amount if you are married, filing jointly with income less than $150,000 or if your individual filing your income would have to be less than $75,000,” Price said.

This year, instead of getting a lump sum parent will receive a monthly payment. The first monthly payment of the expanded Child Tax Credit will be made on July 15, 2021.

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