How do you plan on using your Child Tax Credit?
ROBARE & JONES ON THE MARKETS
The S&P 500 fell 1% this week as worries about inflation and potential changes in monetary policy weighed on the sentiment of consumers and investors.
Worries continue about inflation and how the Federal Reserve's policy-setting committee may respond. Data released Friday showed the inflation concerns contributed to a decline in consumer sentiment in early July.
The energy sector had the largest percentage drop of the week, tumbling 7.7%, and only three of the S&P 500's 11 sectors rose this week: The utilities sector climbed 2.6%, followed by a 1.2% rise in consumer staples and a 0.7% increase in real estate.
June existing home sales are also set to be released Thursday as well as weekly jobless claims.
Let's take a look at the sectors from this past week!
CHILD TAX CREDIT
Last week, 39 million American households that have children age 18 or younger received their first Advance Child Tax Credit payment.
The Internal Revenue Service (IRS) explained, “Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season. If the IRS has processed your 2020 tax return or 2019 tax return, these monthly payments will be made starting in July and through December 2021, based on the information contained in them.”
The amount Uncle Sam sends depends on the age of the children and the income of the family. Eligible households should receive $300 per month for every child age 6 or younger and $250 per month for every child between the ages of 6 and 17, reported Andrew Keshner of MarketWatch.
Good ways to utilize these fund for your children would be through a 529 Education Savings Plan, Achieving a Better Life Experience (ABLE) account, or a Roth IRA.
How will you use your Child Tax Credit?