Child Tax Credit Payments Start This Week

The video discusses the expanded child tax credit under the American Rescue Plan, which increases the credit amount and provides early monthly payments. Eligibility is based on income, and parents can receive payments for children under 18. Some families may opt out due to changes in their tax situation. The expansion aims to reduce child poverty, but public opinion is divided. Options for opting out or enrolling as a nonfiler are available online.

What is the maximum amount the child tax credit was increased to for some filers under the American Rescue Plan?

• $3,000

• $3,600

• $4,000

• $2,000

Who qualifies for the full child tax credit payments?

• Joint filers earning more than $150,000 annually

• Single parents making more than $75,000

• Joint filers earning less than $150,000 annually

• Single parents making less than $50,000

What should parents in a shared custody situation be cautious about regarding the child tax credit?

• Only one parent will receive the payments

• Both parents will receive the payments

• Payments are split equally between parents

• Payments are based on the child's preference

What is the estimated reduction in child poverty due to the tax credit expansion?

• 30%

• 47%

• 50%

• 60%

How can families who do not want the child tax credit payments manage their preferences?

• By opting out online

• By sending a letter to the IRS

• By calling a toll-free number

• By visiting their local IRS office