88% of Children Covered by Mo. Payments05/18 06:06
The Treasury Department said Monday that 39 million families are set to
receive monthly child payments beginning on July 15.
WASHINGTON (AP) -- The Treasury Department said Monday that 39 million
families are set to receive monthly child payments beginning on July 15.
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
"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
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.
The president has proposed an extension of the increased child tax credit
through 2025 as part of his $1.8 trillion families plan. Outside analysts
estimate that the payments could essentially halve child poverty. The expanded
credits could cost roughly $100 billion a year.