When families can expect the Biden cash benefits to hit their bank accounts this year
- The IRS has started sending letters to 36 million families eligible to receive child tax credits.
- Payments will begin on July 15 and continue on the 15th of each month, unless it’s a weekend or holiday.
- Democrats have been pushing for the credit to be extended beyond the end of the pandemic.
- See more stories on Insider’s business page.
The Internal Revenue Service (IRS) has started notifying 36 million American families that they could be eligible to receive a monthly child tax credit starting next month.
President Joe Biden’s $1.9 trillion stimulus law in March included up to $300 in monthly child tax credits for each child under the age of 6, and $250 monthly credits for each qualifying child between the ages of 6 and 17.
According to an IRS press release on Monday, the agency will begin distributing those payments on July 15, with additional deposits spread through the year:
- August 13
- September 15
- October 15
- November 15
- December 15
The other half of the payment will be issued during tax season as one lump sum. The press release said that families eligible for the credits will receive a personalized letter detailing an estimate of their monthly payment.
The Biden administration first announced the July 15 date to begin the payments on May 17, and Biden said in a statement at the time that “about 90% of families with children will get this new tax relief automatically, starting in July.”
Biden’s coronavirus relief package revamped the $2,000 child tax credit, increasing the amount to $3,600 per child 5 and under and to $3,000 for every kid between 6 and 17. It also gave households the option to receive a monthly payment of a one-time sum for the year, and expanded it to include low-income families with no tax obligations.
The IRS noted that most families will receive the payments without additional action, and they should receive them through direct deposit, a paper check, or a debit card — similar to the three stimulus payments that the federal government sent over the past year.
Democratic lawmakers have pushed for a child tax credit beyond the end of the pandemic to sustain economic recovery, most recently renewing the call in April. Biden’s two-part infrastructure plans would extend it to 2025, and without any
“We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit by increasing the benefit to families and providing payments monthly,” Chair of the House Appropriations Committee Rosa DeLauro said in a statement. “Children and families must be able to count on this benefit long after the end of this pandemic.”
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