According to a press release distributed earlier today (May 17), the Internal Revenue Service and the U.S. Department of the Treasury announced that the first round of the American Rescue Plan’s Child Tax Credit (CTC) monthly payments will start being issued on July 15.
As per the statement, 2021’s tax credit will be “$3,600 for children under the age of 6 and [up] to $3,000 per child for children between ages 6 and 17.” On a monthly basis, that means “eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.”
“Roughly 39 million households” will reportedly be supported by the CTC payments, and the IRS and Treasury estimate that over 88% of children in the United States will be covered.
Important things to note are that the “CTC payments will be made on the 15th of each month unless the 15th falls on a weekend or holiday,” and that the monthly payments plan to be distributed “through direct deposit, paper check, or debit cards.” The press release specifically said that the “IRS and Treasury are committed to maximizing the use of direct deposit to ensure fast and secure delivery.”
What’s more is that “the American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half” in the United States. As we reported back in April, if you’re having a child and they’re due at some point this year, the IRS created a portal you can use to update them directly about the changes in your household and how many children you’ll need covered.
As per their most recently released statement, “While most taxpayers will not be required to take any action to receive their payments, [the] Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility.”
If you didn’t know, President Joe Biden signed off of the American Rescue Plan back in March as a way to bring over $1.9 trillion in COVID financial relief to those who need it across the country. In a short statement he released today, the President highlighted that “about 90% of families with children will get this new tax relief automatically, starting in July.” Additionally, Biden noted, “Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come” — and that “this tax cut sends a clear message: help is here.”
Read the IRS and Treasury’s full press release here.