Why your family will start getting child tax credit checks
As part of the American Rescue Plan coronavirus relief bill passed in March, the Biden administration will begin sending out child cash benefits by July 15
The direct payments are part of the one-year child tax credit increase that was approved in the American Rescue Plan — the $1.9 trillion coronavirus relief bill that passed Congress in March. The American Rescue plan “made it possible to pre-pay the benefits on a monthly basis,” according to The Associated Press.
The Department of Treasury said Monday that the direct payments will go to around 39 million American households, with 88% of children qualifying for the credit.
Monthly payments to 39 million households — covering 88% of children in the U.S. — will start going out on July 15th, thanks to the expanded Child Tax Credit (CTC).— The White House (@WhiteHouse) May 17, 2021
That’s the American Rescue Plan at work.
When do the new checks come?
President Joe Biden said in a White House speech Monday that the Internal Revenue Service will start sending out the monthly payments on July 15.
- The cash will be sent through direct deposit on the 15th of every month, or the closest day to that date if there’s a holiday or weekend, The Hill reported.
Details about the checks:
- “The relief law directs the IRS to make advance payments of the credit on a periodic basis from July to December, so that people receive funds in installments throughout the year rather than a single payment when they file their 2021 tax returns,” according to The Hill.
- “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 Treasury Department said in statement Monday.
How much do you get?
- The plan calls for a monthly payment of $300 per child under 6 years old and $250 per child older than 6 years old for families that qualify, according to The Washington Post.
- The American Rescue Plan raised the annual $2,000 child tax credit to $3,000 for children over 6 years old. It further raised the CTC to $3,600 for even younger children, the Deseret News reported.
Who qualifies for the new checks?
Currently, parents who make $75,000 or less will qualify, according to The Washington Post. The amount will diminish for families making more than that, as well as couples who make more than $150,000, according to The Washington Post.
- “With two parents, two kids, that’s $7,200 in the pockets you’re getting to help take care of your family,” President Biden told Congress. “And that will help more than 65 million children and help cut childcare poverty in half, and we can afford it.”
- March’s pandemic relief bill also made parents of 17 year olds eligible for the child tax credit.