Working families with children in Mississippi will soon see additional money in their bank accounts due to the American Rescue Plan. Eligible families will receive as much as $300 a month.
Before the American Rescue Plan, families eligible for the child tax credit had to wait to claim it when they filed their income taxes. But now, a new law allows half of the money to be paid in advanced monthly installments. Eligible families will receive a payment of up to $300 per month for each child up to age 5 and $250 for those 6 and older.
Carol Burnett is with the Mississippi Low-Income Childcare Initiative. She says this will really help low-wage families.
"Those are the families that we see most often. Single moms that are working but they're working jobs that are at or near minimum wage have a really difficult time affording the basic needs for their families because of the low wages they earn."
Burnett says single parents who earn less than $112,000 a year and couples making less than $150,000 qualify for the advanced payments.
She says those who are unemployed may also be eligible.
"Previously, families had to make at least $2500 to qualify and over $30,000 to get the full benefit," said Burnett. "So with this, especially in the time of COVID when jobs have been in jeopardy and parental employment has been at risk, it's really helpful."
Payments start July 15 and will continue on a monthly basis through December.