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American Rescue Plan’s monthly child tax credit payments to begin July 15
The Biden administration announced Monday that about 90% of families with children will begin to receive monthly child tax credit payments starting in July.
The payments are part of the expanded child tax credit program in the American Rescue Plan, which increased the child tax credit from $2,000 per child to $3,000 per child for children over the age of six and $3,600 for children under the age of six. The Biden administration also moved the tax relief from an annual tax credit to a monthly distribution to be issued on the 15th of each month, beginning in July for the remainder of the year.
Qualifying families will receive monthly payments of up to $300 for each child under 6 years old and up to $250 for each child 6 to 18 years old. According to the IRS, advance payments will be estimated from information included in eligible taxpayers’ 2020 tax returns, or their 2019 returns if the 2020 returns are not filed and processed yet.
“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,” President Biden said in a statement. “For working families with children, this tax cut sends a clear message: help is here.”
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