An estimated 91% of Tucsonβs families with children 17 and younger are eligible for the latest federal child tax credit, a study says. The monthly payments should show up in peopleβs bank accounts starting Thursday, July 15.
Tucson is ranked as one of the top 10 cities nationwide when it comes to the proportion of families with children that will receive benefits from the latest federal coronavirus relief package, the LendingTree study says. The study focused on the 100 largest cities nationwide.
This latest effort, known as the American Rescue Plan, will provide up to $3,600 annually per child to qualifying families with kids younger than 6. Families with kids between ages 6 and 17 will receive up to $3,000 per child.
Payments go out on the 15th
Payments will not be provided in a lump sum. Half of the money will be apportioned in monthly payments through the end of 2021. Eligible families can claim the other half when they file their 2021 taxes next year.
The money will be sent out on the 15th of each month for the rest of the year.
The payments are part of the $1.9 trillion stimulus package that President Biden signed into law in March.
One of the best things about the tax credit is that itβs immediately available and usable for low-income families needing extra help due to challenges like job loss, health emergencies or eviction, said Michelle Crow, Southern Arizona director of the Childrenβs Action Alliance, a nonprofit agency that works on behalf of Arizona families.
Average credit will be $7,270
βThe unfortunate fact that Tucson is among the top 10 cities nationwide with the greatest number of qualified families means that we need to employ strategies to better address the persistent poverty that continues to exist, especially among families with children,β she said. βWhat Tucson has been doing thus far is not solving the problem and it is one that deserves a real solution.β
Income levels determine why more families in cities like Tucson are eligible for the full benefits. The median household income in the U.S. is $62,843 while in Tucson, itβs $43,425.
In Detroit, the city expected to benefit the most, according to LendingTree, itβs $30,894.
Families generally donβt need to do anything to receive their payments, which are based on income claimed in 2020 tax returns. If a 2020 return isnβt available, the Internal Revenue Service will instead review 2019 tax returns.
The average expected tax credit for a family in Tucson will be $7,270, says the study by LendingTree, which describes itself as an online lending marketplace.
High earners arenβt eligible
In general, a married couple with a joint income above $150,000 and single earners who bring in more than $75,000 wonβt receive the full benefit, according to the study.
The LendingTree study shows Midwestern families are expected to benefit the most and that four of the 10 cities with the highest proportion of families getting the full benefit are in the Midwest. Behind first-place Detroit, Cleveland and Toledo, Ohio, rank second and third.
The previous child tax credit provided up to $2,000 per child but didnβt include the monthly payments that are part of this new plan.
After the Wednesday morning rains, the CanΝada del Oro wash was not its usually dry bed. Water was running in the wash near the Christina-Taylor Green River Park off of Shannon Road Near Magee.
