Thirty-nine million households across the country will have a little more spending cash this summer. On Monday (5/17), the Biden administration announced that beginning on July 15, monthly stimulus checks will be sent to the families of more than 65 million children.
The direct payments are part of the enhanced tax credit that was included in the president's American Rescue Plan, the same $1.9 trillion COVID relief package that brought many a third stimulus check. Because of the credit, eligible parents will be sent $300 each month for every child they have under the age of six, and $250 monthly for each kid ages 6 to 17. Starting in July, the checks will go out every month on the 15th, unless that day falls on a holiday or a weekend. The payments will run through December, and perhaps even longer, and for many will be direct deposits, but for some will be paper checks or debit cards.
The checks will only go to single parents making up to $75,000, heads of households earning up to $112,500 or joint filers making up to $150,000 a year. The hope is that the tax credit cuts child poverty nearly in half, potentially bringing more than five million kids out of poverty.
To ensure low-income households, which typically don't file taxes, are included in the distribution of the money, the IRS is creating an online portal that allows families to not only claim the enhanced child tax credit but also any stimulus payments they might have missed. Another online portal will let parents update their address, bank account information, and family size so the payments they receive are accurate and sent to the correct place. There is also an option to opt out of the monthly payments and instead get the money as a lump sum with next year's tax return.
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