The families of nearly 88 percent of all children in the U.S. are set to begin receiving monthly payments as part of the recently enacted $1.9 trillion COVID-19 relief package, the U.S. Treasury Department said last week. The payments will begin on July 15.
The coronavirus package expanded the child tax credit for one year and made it possible to pre-pay the benefits on a monthly basis. Families with qualifying children will receive the benefits without the parents needing to take any additional action. Qualified families will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. The child tax credit was previously capped at $2,000 and only paid out to families with income tax obligations after they filed with the IRS.
Under the current program, couples earning $150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit. The benefits total $3,600 annually for children under 6 and $3,000 for those who are older. The IRS will determine eligibility based on the 2019 and 2020 tax years, but people will also be able to update their status through an online portal.
