WASHINGTON – The Treasury Department said Monday that 39 million families are expected to receive monthly childrens payments starting July 15.
The payments are part of President Joe Biden’s $ 1.9 trillion coronavirus relief program, which extended the child tax credit by one year and allowed benefits to be prepaid on a monthly basis. Almost 88% of children are expected to receive benefits without their parents having to take any further action.
Eligible families will receive a payment of up to $ 300 per month for each child under 6 and up to $ 250 per month for children aged 6 to 17. The child tax credit was previously capped at $ 2,000 and paid only to families with income. tax obligations after you file with the IRS.
But for this year, couples earning $ 150,000 or less can receive full payments on the 15th of each month, in most cases by direct deposit. Benefits total $ 3,600 per year for children under 6 and $ 3,000 for those 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 may be eligible for the child tax credit.
Antonya Hester says her family’s finances have been tough, especially due to COVID making it harder to find work. She says the idea of a few hundred dollars more a month is huge.
“With the utility bills, as far as food goes, that would help a lot,” Hester said.
The president has proposed an extension of the increase in the child tax credit until 2025 as part of his $ 1.8 trillion plan for families. Outside analysts believe the payments could essentially cut child poverty in half. The expanded credits could cost around $ 100 billion a year.
“Every day, if it makes them come and go to school, play sports, try to stay active, keep them from worrying… It will help a lot. It will go a long way, ”Hester said.