Families who qualify 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. Instead of the IRS putting the tax credit into tax obligations at the end of the tax season, families will now get monthly payments.
- -Parents have to make a combined income of less than $150,000.
- The decisions will be made on families 2019 and 2020 tax returns.
- Most people will get the payments via direct deposit.
- This means a family will get $3,600 annually for kids under 6 and $3,000 for kids ages 6 to 17.
- It would cost America about 100 million dollars a year.
President Biden announced that his family plan would extend increased child tax credits until 2025.
The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children. With today’s announcement, about 90% of families with children will get this new tax relief automatically, starting in July. While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come. For working families with children, this tax cut sends a clear message: help is here.", according to President Biden's statement.
There WILL be a portal that the IRS is designing that will help families answer questions, report changes and more.