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New stimulus check is coming within days – here’s how to work out what money you will get

MILLIONS of Americans are set to receive their second child tax credit payment next week as part of the America Rescue Plan's expansion to the federal aid.

The majority of US households have already received their first enhanced check after payments began being issued by the IRS on July 15.

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The expanded child tax credits were issued by the IRS on July 15 and will continue to be sent out monthly until the end of the year

Anyone that is considered eligible for the child tax credits may be able to get up to $300 monthly for the remainder of the year.

The news outlet CNET has created a child tax credit calculator for 2021 – which works by obtaining details from a taxpayer's 2020 return.

In order for the calculator to come up with how much you'll get, four questions need to be answered.

You must enter your correct filing status, adjusted gross income (AGI), number of children age five and under by December 31, 2021, and number of children age six to 17 by December 31, 2021.

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HOW MUCH ARE THE PAYMENTS?

The Child Tax Credit used to be capped at $2,000 for most families, however, Joe Biden's administration expanded it for the year in an effort to pump money into the economy amid the ongoing pandemic.

The expanded amount allots $3,600 per child for children under six, and $3,000 per child for kids aged six to 17.

The payments will be made in $300 or $250 installments for eligible families, which began on July 15 and continuing on the 15th of every month for the rest of the year.

Read our stimulus checks live blog for the latest updates on Covid-19 relief...

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The remaining balances can then be claimed at the end of the year on the family's tax return.

To qualify for the full expanded Child Tax Credit, couples need to make less than $150,000 and single parents who file as head of household need to make under $112,500.

Above those income levels, the overall payment will be reduced by $50 for every extra $1,000 in the family's adjusted gross income (AGI).

For example, if a two-parent family has an AGI of $152,000, their overall credit would be reduced by $100.

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CAN I OPT-OUT?

As with previous stimulus checks, parents who qualify for the tax credit can expect to get their cash automatically as long as they filed a 2019 or 2020 tax return.

Parents are also given the option to opt-out of the monthly payments and claim the entire amount on their 2021 taxes.

The IRS said the opt-out tool will be available shortly.

While the expanded Child Tax Credit will give many Americans some extra cash, it's unclear at this time if a fourth stimulus check will be approved.

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Many Democratic lawmakers have expressed support for another round of stimulus checks, with some even calling for more than that.

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However, while the Biden administration has not outright opposed additional checks, they don't appear to be a priority currently.

Luckily, most Americans will pocket more than $3,000 in federal aid this year after collecting stimulus checks and taking advantage of expanded tax credits.

Recent analysis carried out by the Institute on Taxation and Economic Policy recently revealed that the value of federal stimulus dollars averages $3,450 for the bottom 60 percent of earners across the country.

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Fourth stimulus check: Biden is 'open' to more relief payments to Americans as push for $2,000 monthly checks grows
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