SELECT Americans can get monthly checks worth hundreds of dollars if they meet certain qualifications.
Even more are eligible for a direct payment opportunity this year as part of new legislation.
Americans could see a $2,200 credit thanks to a new law (stock image)[/caption]
President Donald Trump officially signed in the One Big Beautiful Bill Act into law earlier this month.
Of the many provisions, one of particular focus is to the Child Tax Credit (CTC), a benefit from the federal government that’s designed to help families reduce their tax liability.
States also have their own CTC’s and in Illinois, there’s a version with an expansion plan that’s sent out $300 monthly checks in recent years.
Beginning in 2026, instead of a maximum payout for the federal version of $2,000 per eligible child, the amount will be $200 higher at $2,200.
It’s also important to note that the credit was originally $1,000 ahead of the 2017 Tax Cuts and Jobs Act, which temporarily increased it to $2,000 until 2025, per CNBC.
With the One Big Beautiful Bill Act, the extra $1,000 stays in place, plus the additional $200.
The CTC is partially refundable, meaning that the credit is used to pay any outstanding amount a taxpayer might owe the government, and any remainder is issued as a check up to $1,700 for 2025.
It can be claimed during tax filing season by noting children or other dependents on Form 1040, the US Individual Income Tax Return, and completing and attaching Schedule 8812, the Credits for Qualifying Children and Other Dependents document.
To get the CTC, the child or dependent must meet several requirements, as noted by the Internal Revenue Service (IRS).
CRITERIA TO CONSIDER
First, they must be under 17 by the end of the 2025 tax year.
They must also be related to the taxpayer as son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, niece, nephew, or other descendent (grandchild).
Additionally, the dependent/s must not have supported themselves financially for more than half the year.
Other requirements are as follows:
- Have lived with the taxpayer for more than half the year
- Be claimed as a dependent
- Have not filed a joint return
- Be a US citizen, US National, or US resident alien
- *New* At least one taxpayer must have a valid Social Security number (SSN)
- Child or dependent must also have valid SSN
Trump’s main policy points
- Implementing tax cuts, including no tax on tips.
- Protecting Social Security and Medicare – Trump said, “Incomes will skyrocket and the middle class will prosper like never before.”
- Protecting borders – He pledged to end the “border nightmare.” That means two things on day one – “Drill baby Drill,” as he said, and close the borders.
- Finishing building the wall.
- Keeping our “sons and daughters safe.”
- Replenishing the military and building a military “dome” – Trump insisted he could stop wars with just a phone call and said no military would be able to penetrate the USA if he came into office.
- Ending the war in Ukraine and imposing tariffs on Iran.
- Vowing to “beat” China.
- Working to decrease prices and ease inflation.
- Bringing down the cost of energy.
- Making cities “safe, clean and beautiful” again.
- Making it possible for Americans to buy gas-run cars by ending the electric vehicle mandate on the first day of his presidency.
Taxpayers income must also not exceed $200,000 as a single filer or $400,000 for a joint return to get the full credit.
A decrease of 5% is placed on the credit for every $1,000 earned over the thresholds.
More details can be found on the IRS website.
COST CATCH
The Congressional Budget Office’s also estimated that the CTC increase under the One Big Beautiful Bill Act will cost the government about $817 billion in the next decade.
The total cost of the One Big Beautiful Bill is around $3.3 trillion.
Low-income Americans will also likely miss seeing the benefits.
About 17 million children don’t qualify for the entire $2,000 because their families’ incomes aren’t high enough, per data from the Tax Policy Center.
Other funds are also going out to select Americans this summer.
Millions are getting one-time payments worth $400 with no strings attached and no application required.
At least $2,100 could also be claimed by some for summer camp costs.
