Roughly 39 million American families will receive their first payments from the expanded child tax credit on July 15 as part of the Biden administration’s American Rescue Plan, the Treasury Department announced on Monday.
The monthly payments — covering about 88 percent of the children in the US — will begin in July and continue every 15th of the month without parents having to take any further action, the statement said.
“For working families with children, this tax cut sends a clear message: help is here,” the White House said in a statement.
Families that qualify 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, the Treasury Department said.
The $1.9 trillion coronavirus relief package increased the maximum child tax credit to $3,600 for children under the age of 6 and to $3,000 per child for children between ages 6 and 17 for one year.
The majority of the families will receive the payments through direct deposit, paper check or debit cards.
Eligibility will be determined by the IRS based on tax returns from 2019 and 2020.
While most families will not need to take any additional action to receive the payments, the Treasury Department said it and the IRS will work with outreach groups to make families aware of their eligibility.
With Post wires