About 39 million U.S. families with kids will start receiving monthly payments in July as part of the expanded child tax credit, the Treasury Department announced Monday, Fox 2 reported.
Beginning on July 15, families who meet specific qualifications, will be paid up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17, according to the article.
The payments are from President Joe Biden’s $1.9 trillion COVID-19 relief package, the American Rescue Plan Act, which grew to the child tax credit for one year.
“It also made it possible to pre-pay the benefits on a monthly basis — rather than through tax refunds,” per the story.
The child tax credit was previously stopped at $2,000 and just paid out to families with income tax obligations after they filed with the IRS.
But in 2021, couples earning $150,000 or less can receive the full payments on the 15th monthly — most typically via direct deposit — to allow families to “plan their budgets around receipt of the benefit,” the IRS said in a statement. The payments could come a day earlier or later if the 15th falls on a weekend or holiday, according to the story.
Nearly 88% of children are going to receive the benefits without their parents having to do any extra action.
“While most taxpayers will not be required to take any action to receive their payments, Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility,” the IRS statement said in the article, which coincided with the deadline for Americans to file their 2020 tax returns.
The benefits total $3,600 annually for children under 6 and $3,000 for those who are older. The IRS will look at eligibility based on the 2019 and 2020 tax years, also individuals can update their status through an online portal.
The expanded credits might roughly $100 billion a year.
“While the American Rescue Plan provides for this vital tax relief to hard–working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come,” Biden said in a statement per the article.
“For working families with children, this tax cut sends a clear message: help is here,” he added per the story.
This story was reported from Cincinnati. The Associated Press contributed.
Read the full story here.
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