The Biden administration made a major announcement!
Starting July 15, approximately 39 million families will begin receiving monthly
. The funding is from the American Rescue Plan. The administration hopes this will dramatically reduce child poverty.
Usually, the payments are given annually as a tax refund, but for the first time, they'll be distributed monthly. Since the advance payments are starting halfway through the year, families will get the second half as tax refunds.
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 is, according
- 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
the child tax credit through 2025 and make them permanently fully refundable. In a
, he said,
"While the American Rescue Plan provides for this vital tax relief to hard-working families for this year, Congress must pass the
to ensure that working families will be able to count on this relief for years to come."