wealth distribution

Child Tax Credit Distributed, Childcare Providers Looking Down the Road

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The Federal child tax credit kicked in on Thursday.

It is the start of monthly payments by the IRS to help families with kids 17 or younger.

Many families are still feeling the economic effects of the pandemic.

Now, with new monthly child tax credit payments, tax advisors say families will start to get some help.

“That’s something that we haven’t seen in the past. We’ve seen stimulus money, that’s come in but not an advance on child tax credits,” says Vice President of Intrust CPA in Traverse City, Jeff Wood. 

The IRS says on Thursday they sent payments for almost 60 million children, totaling in $15 billion.

It’s a pre-payment of the child tax credit families normally get at tax time and the stimulus bill raised the amount paid.

“So, previous to last year it was about $2,000 per child and now it could be upwards to $3,600 per child, so that’s quite an increase,” said Wood. 

Owner of A Jump Ahead in-home daycare, Marci Conroy, says this credit helps ease a bit of burden off her students’ families. 

“I’m sure the fact that daycare is expensive in itself they’re overjoyed with the fact that they’re going to be able to get some sort of a tax credit for it,” Conroy says. “It helps them to be able to pay for a need that they have.”Cc01e4a6 B1d0 4d2b B1db 888f6900f89e

She says with new aid and possible talks of offering free preschool in the state, it could hurt in-home childcare providers.

“If they take my three to five year old’s away then I can’t make ratio to keep another person employed but if I don’t keep another person employed then my costs are going to go through the roof for the parents,” says Conroy.

Now, she says she’s waiting for answers.

“I would love to see more from LARA, I would love to hear even what the governor would have to say,” said Conroy. “And have they taken into consideration all of us little home daycare providers?”

Intrust CPA tells us that this disbursement will be made on the 15th of every month for the rest of the year.

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