Many families with children will begin receiving a child tax credit on July 15, which could mean another boost in retail spending.
The child tax credit awards $300 for each child under 6 years old and up to $250 for children 6-17. There are also some payments for kids in college.
Income-wise, heads of households earning $112,500 a year and households making up to $150,000 a year receive the full payments and the amount phases out for higher earners, said Yahoo!Finance.
The payments will run mid-month through December. Families can receive half the credit this year and the rest when they file their taxes in 2021.
About 36 million families have already received a letter from the IRS stating that they are eligible and more are expected to qualify.
All this raises the question of what will happen if stimulus payments stop later next year and what the economy can expect.
The latest Gross Domestic Product (GDP) numbers due later this month are expected to show that the economy has already recovered from its losses during the pandemic, reports The Washington Post. The Congressional Budget Office expects the economy to grow by a very brisk 7.4 percent this year (the highest growth in almost 40 years), but then it is expected to drop off to a very anemic 1.1 percent in 2023 and about 1.2 percent in 2024 and 2025. This would mark the slowest growth outside of a recession in about 90 years.
For more on the future of the economy and current government spending see The Washington Post article here.
