Biden’s Child Tax Credits Start Rolling Out This Week — Here’s What You Need to Know

Beginning July 15, 39 million American households will begin receiving enhanced child tax credit payments as part of the Biden administration’s goal of cutting child poverty in half this year. The monthly payments will be based on households’ 2020 tax returns, or their 2019 returns if last year’s returns are still outstanding. Eligible families will receive $300 per month for every child under age 6 and $250 for every child ages 6 to 17, and most payments will be deposited directly into parents’ bank accounts. Previously, families in the U.S. could receive a tax credit of up to $2,000 per child under age 17, but the enhanced benefit, passed as part of the American Rescue Plan, raises the limit to between $3,000 and $3,600 per year depending on the child’s age. Half of the credit is also offered in the form of monthly direct payments rather than the whole credit coming as a lump sum at tax time, though recipients can opt for the latter method through an online Internal Revenue Service portal. The enhanced payments are expected to cover 88% of American children, with the full benefit available to those with adjusted gross annual incomes of up to $75,000 for single parents

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