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A lot of people are waiting to hear news about whether or not we will see more stimulus checks.
But there is another type of benefit that could be on the way that could provide people with even more financial aid than the stimulus checks.
It’s called the child tax credit and it might be a major component of the next stimulus package.
The child tax credit also called the “CTC” is a tax credit that parents can claim for their children that will help reduce their tax bill.
While there have been some disputes over the support of this credit, it also has garnered a lot of support to so many people like the odds of this tax credit passing in the future.
“The child tax credit has overwhelming bipartisan support for a reason,” Sen. Mike Lee, a Republican from Utah, told the Wall Street Journal Wednesday.
“Whoever controls the White House, the House and the Senate — anyone who wants to increase the CTC will have my support.”
The child tax credit is a $2,000 credit that parents can claim on their taxes for every child under the age of 17 that they have.
And if the $2,000 credit happens to exceed the amount of taxes owed, the parents can still receive up to $1,400 of the balance (per child) as a refund.
So let’s say that a married couple has three children under the age of 17. They would be given a tax credit of $6,000 but in the event they were due a refund, they would receive $4,200.
It’s worth noting that a new version of the Heroes act would allow refunds in the above case to top out at $6,000.
So as you can see, this could be a huge benefit that works in addition to the stimulus checks for some people.
If a family has older children, such as kids ages 17 and 18 or full-time college students between the ages of 19 and 24, they can receive a $500 credit per child.
Married couples that file jointly and have an adjusted gross income under $400,000 or individuals with an adjusted gross income under $200,000 can receive the full amount of the credit but those making more than that will have a reduced credit.
The child tax credit was one of the issues that hung up the negotiations between Nancy Pelosi in Steve Mnuchin.
It was never really clear to me if the tax credit itself was an issue or if they were just having issues with the amounts that should be given via the tax credits.
If I had to guess, I would guess the latter.
But as shown with the quote above, there does seem to be a good base of support for this initiative from both Democrats and Republicans.
So I think that it is something you can probably expect to see in some form in the next stimulus package (assuming that we don’t have to settle for a “skinny package”).
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.