Recently, there have been a lot of discussion about the monthly payments that some families will receive as a result of the expansion of the Federal Child Tax Credit that was part of President Biden’s American Rescue Plan.
Every month, through the end of the year, and possibly longer, families with children under the age of six will receive $300, and families with kids between the ages of six and 17 will receive $250.
However, several questions on what will be the benefits for families with older children who might be in college have been on a rise.
Many types of these households will get some stimulus money too – and it’s going to be $500 in this case, according to a report from iHeart.
A one-time payment of $500 will be provided to qualified households with dependent children who are 18 to 24 and attends college full-time as part of the same Federal Child Tax Credit.
Read More: Before Filing Taxes, You Should Read IRS Letter 6419 – What Is It and Why Should You Read It?
In order to qualify for the full amount, single filers with dependent college students must earn less than $75,000 a year.
Heads of households must earn less than $112,500 annually, and a married couple or joint filers must earn less than $150,000 annually.
Families must note that the tax credit drops by $50 for every $1000 above these amounts.
It is not the only requirement. To be eligible, you should also cover more than half of your child’s expenses, and claim them as a dependent.
You can get $500 for each child in college if you meet all the criteria for the credit and have more than one.
Money will be available after filing your taxes in 2022.
More information can be found on the IRS website here.