By July 15, nearly 40 million low- to moderate-income households will benefit from direct, monthly government aid.
Grow Your Business,
Not Your Inbox
Stay informed and join our daily newsletter now!
2 min read
In the two months since President Biden passed his administration’s signature American Rescue Plan, a majority of American households have received thousands of dollars in direct stimulus assistance from the Department of the Treasury and IRS. Now, the dynamic bureaucratic-agency duo is at it again. It was formally announced this morning by both agencies — and buoyed by a brief memo from Biden himself — that 88% of American households with children will begin receiving advance monthly payments toward 2021’s total Child Tax Credit beginning July 15.
The American Rescule Plan boosted the maximum allowable amount this year to $3,600 per child 6 and under, and $3,000 for every child between 6-17. The previous ceiling was $2,000 per child under 17, distributed as a lump sum at year’s end. But beginning July 15, eligible households (see IRS for income thresholds and other criteria) will start receiving that money in monthly installments of up to $300 per child 6 and under and $250 for those 6 and older. Subsequent payments will be made via direct deposit or paper check every 15th of the month (barring federal holidays) through December, totalling as much as half of the ultimate credit.
Related: Biden Signs $1.9 Trillion Stimulus Into Law, Americans to Receive Individual $1,400 Payments as Soon as This Weekend
President Biden’s statement declared that this gradual, advanced meting out of aid “is delivering critical tax relief to middle class and hard-pressed working families with children.” The Treasury added in its press releases that it and the IRS “will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility.”
In classic government-agency fashion, the IRS rounded out its announcement by reminding folks at the grassroots that they are at least partly responsible for ensuring the money goes where its needed most, urging “community groups, nonprofits, associations, education groups and anyone else with connections to people with children to share this critical information about the CTC.”
Consider it shared.