Monthly Child Tax Credit Payments To Families Start Next Week; Axne Says They Should Be Permanent
Most Iowa families with kids will start getting a temporary monthly payment from the federal government next week, and Democratic U.S. Rep. Cindy Axne said Thursday she is working to make that permanent.
An estimated 4 in 5 Iowa households with kids can get up to $300 per child each month starting July 15 and going through December. The monthly payments are temporary as part of the American Rescue Plan signed into law in March by President Biden.
At an event at Grace Preschool in Des Moines Thursday, Axne said she supports making the expanded tax credit permanent.
“This is a very wide-reaching measure, and one that I believe takes great strides in supporting our families as they try to raise their kids right now, but also shows potential new parents…that having kids is financially feasible, because a lot of folks think that it’s not right now,” Axne said.
The full tax credits of $300 per child up to age 6, and $250 per child ages 6 to 17, will go to married couples making $150,000 or less and to single parents making $112,500 or less. After the monthly payments are distributed over the next six months, families are scheduled to receive the rest of the tax credit next year.
Axne said this is estimated to impact 193,000 households in Iowa and more than 647,000 kids.
Jason Burkhiser Reynolds has two young kids who are students at Grace Preschool. He said the money will help his family with transportation and with saving for college for his kids.
“It’s really just an opportunity to take that burden off of us a little bit each month to help support our kids for the future,” Burkhiser Reynolds said.
Tiffany Welch of Clive said she will use some of the money for summer educational experiences for her kids, to save for college, and to give back to the community.
“I spoke to several friends about what this would mean for them,” Welch said. “Child care was pretty much the number one thing that came up. Accessing quality child care is expensive and needed for most families in Iowa.”
Speakers also said some Iowans plan to use the money for medical bills, fresh fruits and vegetables, student loans, rent, car repairs, and other expenses.
Iowans who filed a tax return for 2019 or 2020 or who signed up for an earlier stimulus check can expect to receive the payments automatically in their bank account or in the mail. Those who haven’t done so can visit childtaxcredit.gov to sign up for the payments.
People who aren’t required to pay federal income taxes can receive this tax credit. The payments are also available to families with mixed immigration status for any kids who are citizens.