In the News

SPRINGFIELD, MA (WGGB/WSHM) -- If you have a child under the age of 18 you could soon get a $3,000 tax credit.

That's what is proposed under the American Rescue Plan Act, which heads to a final vote Wednesday in Washington, D.C.

How do you know if you qualify for the money?

If Congress passes this bill, it would raise the amount that parents could get for each child, and parents could start receiving payments as early as this summer.

“Hopefully the bill is passed,” Springfield resident David Nebar said.

Nebar is anxiously watching Washington hoping the latest COVID-19 stimulus bill makes its way to the president’s desk. He said he has a 14-year-old child and said he could benefit from the expanded child tax credit the bill proposes.

“It would help a lot especially in this pandemic going on. Things are really hard. It would help a lot to keep you floating, you know, because we are sinking,” Nebar said.

Under the legislation, the Child Tax Credit would be expanded from $2,000 per child to $3,000 per child between the ages of seven and 17. Parents could get $3,600 if their child is six or younger.

The expanded credit is for parents who earn $75,000 a year or less and $150,000 or less for joint filers.

The benefit decreases as income levels rise plateauing at $2,000 until a person earns $200,000 a year or $400,000 for joint filers.

“You can get up to half of the child tax credit during the months of July through December,” Liberty Tax Service Tax Preparer Ray Maagero said.

Tax preparers said parents can expect installments this summer and the second half of the tax credit later.

“You would receive upon filing your tax return,” Maagero said.

“For many people, this is a it'll never happen moment happening,” Congressman Richard Neal said.

If the bill becomes law, the expanded Child Tax Credit would expire after a year.

Neal, one of the main driving forces behind this proposal, wants to make it permanent.

“Putting money into the hands of people who need it we think is good economic policy and good health care policy,” Neal said.

Once the final version of the bill is passed more details are expected on how and where parents can adjust the payment schedule either electing month-to-month payments or more infrequent installments.