Rachel Bucchino
Child Tax Credit,
The IRS is expected to send out the first advance child tax credit payment to millions of American families in roughly two weeks as part of President Joe Biden’s $1.9 trillion coronavirus relief bill.
Biden’s rescue package boosted the credit from $2,000 to $3,000 and allowed parents with children under the age of 6 to qualify for $3,600. The measure also permits parents with children at the age of 17 to be eligible for the credit.
To receive the credit, the IRS this week upgraded an online tool for families to update their bank account information so they can get the extra federal money by direct deposit.
The agency added a bank account update feature to the Child Tax Credit Portal, and any changes to bank account information before August 2 will apply to the August 13 payment, as well as all remaining child tax credit payments.
Rather than receiving the money as a lump sum, parents with children under the age of 6 will get $300 monthly payments per child from July through December, and those with children between the ages of 6 and 17 will receive $250 payments per child.
The payments will be distributed monthly by the IRS, starting on July 15, followed by August 13, September 15, October 15, November 15, and December 15.
Families who are not enrolled in the direct deposit option will receive the money by paper check. The IRS has been pushing people without a bank account on file to update their information so that they can receive the payments sooner.
The agency has also cautioned recipients to avoid any scams related to the child tax credit.
Individuals earning up to $75,000 are eligible for the full enhanced credit amount, as well as joint filers making up to $150,000 and heads of households earning up to $112,500. The amount will then drop by $50 for each $1,000 in income above these caps.
Several congressional Democrats have joined together in efforts to make the expanded child tax credit permanent, though Biden has only indicated that he would extend the credit through 2025.
“We must make this lifeline permanent, which is why Congressional Democrats will continue to champion an expanded Child Tax Credit—because we can only Build Back Better by putting families first,” House Speaker Nancy Pelosi (D-Calif.) said in a statement earlier this year.
Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report and The Hill.
Image: Reuters.
