‘It’s historic’ R.I. financial professional reacts to child tax credit payments

It's estimated over 35 million families will benefit from this credit plan.

PROVIDENCE, R.I. (WLNE)- Relief payments began hitting the pockets of over 35 million families on Thursday, as part of the first payment in the child tax credit plan.

The IRS has estimated that this first round of payments across the nation will cost $15 billion dollars.

The U.S. Treasury adds nearly 173,000 children in Rhode Island are qualified to receive this money at a cost of $43 million dollars.

Jeffrey Massey, with Massey and Associates out of Warwick, says this credit plan is absolutely historic for two main reasons. One being overall price tag, secondly, as it is expected to make one the biggest differences in child poverty the nation has ever seen.

This plan increased the credit from $2000 per child to $3000 for children over the age of 6, and $2000 to $3600 for children under the age of 6. Additionally- the age limit was raised from 16 to 17.

Massey says many are preparing to spend this money in a lot of different ways. Some, planning to save it for a rainy day or a vacation. Others- say they plan to buy healthier groceries for their families.

The Biden Administration says this could potentially lift 50% of families out of poverty.

Unlike the issues many faced with receiving their stimulus checks on time, Massey believes since the IRS has been preparing for these payments for quite some time- there should be less delays.

“I would think if you don’t have a check in 2-3 weeks you would want to look into that and you can do that simply by going to the irs.gov,” Massey advises.

This relief is all part of President Joe Biden’s American Rescue Plan which passed in March, totaling $1.9 trillion dollars.

For more about the monthly child tax credit please click here.

Categories: News, Rhode Island