The monthly child tax payments will be given out from next month. And accordingly, the families who are eligible will receive 250 USD on the basis of some provisions. This may look like a form of stimulus check but this is wrong. This is only the beginning of advance payments that are a part of the child tax credit.
Addressing The Stimulus Check Confusions
As for the similarities between the stimulus check and the child tax credit, zero spending restrictions have been offered to the receivers. There is a certain income limit set and if people fall below the limit, they are fully eligible to receive the money. The department of the IRS relies on the “tax-return data” to determine both payments.
The income limit that determines if they receive the payments are also the same. And neither the CTC nor the stimulus check will have any effect on the eligibility to receive the benefits as stated by the concerned department. The money that is received from both sources is not included as the taxable income in order to prevent the lengthy unnecessary inconvenience.
Despite all these similarities, there are also a couple of important differences. Alvin Carlos, the financial planner gave a statement with regard to the confusion arising out of the two payments. It was stated that it is not a surprise even if the receivers take the CTC to be the next round of the stimulus checks. In order to be eligible for the child tax payments, one must have a minor in the house who has to be qualifying.
However, as far as the regular relief check is concerned, the eligibility does not affect the absence of a qualifying minor in the house. What is a major problem is the fact that very few eligible receivers are aware of the CTC. As per the results of a survey, only 55% of people know about it. And the poll had over 1700 participants in the survey.