Edited by: TJVNews.com
The Treasury Department has announced that 39 million families are set to receive monthly child payments beginning on July 15, according to an AP report.
The payments are part of President Joe Biden’s $1.9 trillion coronavirus relief package, which expanded the child tax credit for one year and made it possible to pre-pay the benefits on a monthly basis. Nearly 88% of children are set to receive the benefits without their parents needing to take any additional action.
“This tax cut sends a clear and powerful message to American workers, working families with children: Help is here,” Biden said in remarks at the White House in May.
The AP reported that qualified families will receive a payment of 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. The child tax credit was previously capped at $2,000 and only paid out to families with income tax obligations after they filed with the IRS.
But for this year, couples earning $150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit. The benefits total $3,600 annually for children under 6 and $3,000 for those who are older. The IRS will determine eligibility based on the 2019 and 2020 tax years, but people will also be able to update their status through an online portal. The administration is also setting up another online portal for non-filers who might be eligible for the child tax credit, as was reported by AP.
The president has proposed an extension of the increased child tax credit through 2025 as part of his $1.9 trillion families plan. Outside analysts estimate that the payments could essentially halve child poverty. The expanded credits could cost roughly $100 billion a year, according to the AP report.
A derailed report on the KTLA5 web site said parents who will receive the payments must reside in the U.S. for more than half of the year, have at least one child who is under 18 years old at the end of the year, have a valid Social Security number, and meet some income thresholds.
The report also said that taxpayers will get the full amount if they meet the following modified adjusted gross incomes:
- $75,000 or less for singles
- $112,500 or less for heads of households
- $150,000 or less for married couples filing jointly, as well as qualified widows or widowers
In addition to the July 15 installment, the IRS is scheduled to deliver the rest of the monthly checks for this year on Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15. Parents will receive the payment either by mail or through direct deposit in their bank account, depending on what information is on file with the IRS.
Anyone who wants to receive their check via direct deposit but hasn’t already provided the IRS with their account details can do so on the agency’s website.
