I was just talking to my wife about the stimulus money we have been receiving. Between the Trump Money and the Biden Bucks it has been nice to have unexpected money to spend on some of our recent surprise expenses. We had to replace the transmission in our car last week and that was a big chunk of change. My wife was excited to hear about getting more money from the government for having kids, until I explained it to her a little better. It's still cool but not as cool as she was thinking, and here's why.

What is the Expanded Child Tax Credit?

Actually, most of us were thinking the same thing as her when we first heard about the expanded child tax credit: we're getting an extra $3,600 for each kid. But here's why that isn't exactly correct. The money you'll be getting starting in July is actually an advance on the money you would normally get with the child tax credit when you file your taxes. You're just getting it in monthly payments now.

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Is There Any Extra Money For Families in the Expanded Child Tax Credit?

So, while you aren't getting an additional $3,600 this year you will be getting some extra money as the child tax credit has been increased from the $2,000 you'd normally get when filing taxes. An extra $1,600 isn't something to scoff at.

What Other Differences Are There With the Expanded Child Tax Credit?

Something else parents should be aware of with the child tax credit is that it isn't $3,600 for each child you have. The $3,600 applies to children under the age of six. For kids older than six the payout is only $3,000.

Do I Have to Take the Child Tax Credit Now or Can I Wait Until I File Taxes in 2022?

If you would prefer to get the child tax credit when you file taxes, you can make that choice. The IRS plans to have an online portal where you can opt out of the monthly money.

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