TEXAS, USA — Child tax credits have been rolling out to U.S. families since July and the third payment is on its way to millions more.
Single mom Kia Gray said her third tax credit payment came just in time to get her son school supplies.
“I actually was able to go back and get him more clothes for school and things that he's going to need just in case I do run into more financial difficulties and become unable to get these items for him," Gray said.
Certified Financial Planner Jose Feliciano said the child tax credit — up to $3,600 for children younger than 6 and $3,000 for those older — is meant to fill a gap.
“The intent is just to ease the burden on families," Feliciano said. "And two, it will also stir the economy because you put more money back into the system.”
The most common use for this credit? Food.
Our newspaper partner, the Tyler Paper, reports in the past two months, food insecurity rates for families with children have fallen 27% statewide.
For anyone receiving this credit, Feliciano said to keep a close eye on your income. If your income will increase between tax seasons, it could cost you.
“If the income goes up, you could be in a position that you have to pay back some so just remember, the intent is to get you over this hump," Feliciano said.
He also said there's no best way to spend these funds once received because everyone’s needs are different. If someone saves it, spends it or uses it to pay off debt, they’ll still stimulate the economy.
