The Biden administration shared good news for some Americans.
Approximately 39 million families will begin receiving monthly child tax credit payments starting on July 15. The money is from the American Rescue Plan.
Normally, the payments are given once a year as a tax refund but for the first time, it’ll be distributed monthly. Since the advance payments are starting in the middle of the year, families will get the second half as tax refunds.
Via Hot 97
NBC reports qualifying families will get monthly payments of up to $300 for each child under 6 years old and up to $250 for each child 6 to 17 years old. When the child turns 18, the credit goes away. Payments will be given out in the 15th of each month unless the date falls on a weekend or a holiday.
Families that quality are, according to the IRS,
- Families with incomes over $150,000 for married taxpayers filing joint returns.
- Widows or widowers; $112,500 for heads of households; and $75,000 for all other taxpayers.
Biden wants to extend the child tax credit through 2025, as well as making them permanently fully refundable. In a statement he said,
“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.”
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