Normally the tax season boom for the auto industry cools down during the hot summer months, but not this year. 2021 is a different story.
Beginning on July 15th, the first child tax credit payments started going out. According to CNN, these payments are “part of a $1.9 trillion stimulus package that President Joe Biden signed into law in March.” They will give tens of millions to families extra cash in their pockets each month through the end of the year. Many taxpayers indicated that purchasing a vehicle is a top priority going into the new school year.
Payments will be mailed or sent via direct deposit on the fifteenth of each month through December. Joint households earning less than $112,500 and single households earning less than $150,000 will be eligible for the full credit. Households above those thresholds will be eligible for partial credits.
The credit will allow “eligible families to receive a total of up to $3,600 for each child under 6 and up to $3,000 for each one aged 6 to 17 for 2021.” This equates to parents receiving up to “$300 a month for each child under age 6 and up to $250 for each one age 6 to 17 on a monthly basis.” This influx of cash for millions of Americans will provide that little extra needed for larger down payments or to pull the trigger on getting a new vehicle.