This summer millions of eligible New Jersey families will be getting relief in the form of payments from the IRS. Unlike the recent New Jersey tax credits that are going out now, these are coming from the Federal government.

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It's part of the 2021 Child Tax Credit. The President expanded on this with the American Rescue plan which includes the "enhanced Child Tax Credit."

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Economic Stimulus Package Tax Rebate Checks Printed
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While this is good news for families that are working hard to make ends meet and need the money, it is a little complicated, so let's break it down.

What is the enhanced Child Tax Credit?

The original Child Tax Credit was a yearly $2,000 benefit per year, that was factored in when you filed your taxes. The enhanced Child Tax Credit increases this benefit to up to a $3,600 benefit per child. Plus, if your family is eligible, you can receive monthly advance cash payments from July to December 2021. In fact, the first installment of $250-$300 advance payments start going out on July 15.

Am I eligible for the 2021 Child Tax Credit?

According to the White House, to get the maximum benefit:

  • Families must make less than $150,000 a year and file their taxes as a couple.
  • A parent filing as 'head of household' must make less than $112,500.
  • A single parent filing alone must make less than $75,000.
Economic Stimulus Package Tax Rebate Checks Printed
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How are the 2021 Child Tax Credit payments made?

If you or your family are eligible for the maximum amount, you will get up to $300 per child 6 years and under and $250 per child ages 6-17. Payments will come to you monthly starting in July through December.

How do you claim the 2021 Child Tax payment?

If you filed a tax return in 2019 or 2020 and received a previous stimulus check, the monthly payments should come automatically.
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With the extra cash, we can hopefully keep our favorite stores in business. LOOK: Here are 50 of your favorite retail chains that no longer exist.

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