VIRGINIA BEACH, Va. — Hundreds of thousands of families in Virginia will receive extended child tax credit payments starting Thursday, due to a program funded by President Biden's American Rescue Plan.
The program is designed to help with childcare costs, with many parents calling it a "blessing" and supporters saying it will reduce child poverty.
“This is a massive tax relief that will help set our children up for success and put more money in the pockets of hardworking parents," said Congressman Bobby Scott.
Instead of waiting for a lump sum in a tax return, the program provides parents up to $300 per child for the next six months.
An eligible family with three young children could receive up to $900 per month for the rest of the year.
“Anybody who has kids knows they’re not exactly cheap," said David Yost, a Norfolk parent, who received his first payment Thursday. "It's really helped me out."
Yost, who plans to use the advance payments to help pay rent and housing costs for his family, said the program is a huge boost to low-income families.
“Helping out with childcare, allowing people to go and get those jobs," he said.
Some Republicans have argued that parents could use expanded child tax credits to delay returning to work.
Congressman Scott said there's no evidence for this perspective, referencing studies and reports that found people are more likely to go to work when receiving money through programs like this.
“Nearly all hardworking parents should get their monthly payments automatically beginning today, a great day for families in Virginia," Scott said.
Still, some parents are choosing to opt out of the expanded tax credits, concerned they could lead to a larger tax bill next year.
The IRS is making prepayments based on family income shown on previous tax returns.
For this program, income limits are $75,000 for single filers and $150,000 for most married couples. If family incomes have risen past these levels, parents could have to pay back some of the prepayments in the spring.
A family in Virginia Beach told 13News Now they opted out of the program based on their income levels and advice from a family accountant. However, most parents and especially low-income parents won’t have to worry about this.
“Together we can do anything because I got my deposit today," said Chiquita Hubbard, a mom in Newport News.
Scott said Democrats are looking to extend the additional child tax credit program beyond 2021.
“It would be a major disappointment if this program is not extended," he said.
Yost said he views the child tax credit program as a miniature stimulus package, helping the economy recover.
“We can buy and support other people working, so more people are working and getting paid to run their jobs," he said.
If you filed federal taxes or signed up for a stimulus check, you should automatically get the monthly payments. They will be delivered monthly through the end of the year.