This landmark legislation is a major reason for our recent achievements. The American rescue plan bolstered many facets of Virginia’s COVID-19 response – including extensive use of vaccines, additional stimulus checks, and support for family-owned restaurants, bars and breweries through the Restaurant Revitalization Fund. Virginians were quick to feel the effects of these regulations.
However, Virginians have yet to feel a key component of the American rescue plan – the expansion of child tax breaks.
The American Rescue Plan expanded the child tax credit from $ 2,000 per child to $ 3,600 per child. In addition, it has been ensured that this credit is fully refunded. This month, child tax credit payments to bank accounts will begin.
Central Virginia families receive annual payments – up to $ 3,000 per child 6-17 years old and up to $ 3,600 per child under 6 years old – that are distributed in monthly increments. The Internal Revenue Service (IRS) plans to begin these payments on July 15th by sending families half of their monthly payment – meaning they can get up to $ 300 per child under 6 and up to $ 250 per child between the ages of 6 and 17. In the 7th district alone, almost 150,000 children and their families will benefit from these payments. This means that 80% of the children in the 7th district benefit from it.
Amazingly, it takes little to no effort for most families to benefit from these payments. Central Virginia families get full credit when they earn up to $ 150,000 for a couple or $ 112,500 for a single parent. Families who earn more receive a proportionate amount of the credit. Families who filed taxes in 2019 or 2020 – or signed up for a stimulus check from the IRS – should automatically receive this tax break.