The child tax credit sends eligible families as much as $300 per child on a monthly basis from July through December.
Biden’s $1.9 trillion American Rescue Plan widened the child tax credit from $2,000 to $3,000 and allowed parents with children under the age of 6 to qualify for $3,600. The measure also permits parents of children at the age of 17 to be eligible for a tax credit, a move that some experts describe as “a baby step toward universal basic income.”
Families who qualify for the expanded child tax credit based on their 2019 or 2020 federal income tax return will receive a letter from the IRS. The agency said it will send out another letter that will provide families with an estimate of their monthly payment amount, which will start going out next month.
The IRS also said that qualifying families who used the “non-filers tool” on the agency’s website last year to formally register for a stimulus payment will get a letter in the mail.
Parents with children under the age of 6 will get $300 monthly payment per child, and those with children between the ages of 6 and 17 will receive $250 monthly payment per child.
Similar to the qualifications for the stimulus checks from Biden’s relief bill, individuals earning up to $75,000 are eligible for the full enhanced credit amount, as well as joint filers making up to $150,000 and heads of households earning up to $112,500. The amount will then drop by $50 for each $1,000 in income above these caps.
The payments will be distributed monthly, starting on July 15, followed by August 13, September 15, October 15, November 15 and December 15.
Several congressional Democrats have called on the White House to make the credits permanent, arguing it is essential for a full recovery.
“Expansion of the Child Tax Credit is the most significant policy to come out of Washington in generations, and Congress has an historic opportunity to provide a lifeline to the middle class and to cut child poverty in half on a permanent basis,” the lawmakers wrote in a letter to the president earlier this year. “No recovery will be complete unless our tax code provides a sustained pathway to economic prosperity for working families and children. Permanent expansion of CTC will continue to be our priority.”
Some Democrats behind the effort include Sens. Cory Booker (N.J.), Sherrod Brown (Ohio) and Michael Bennet (Colo.), as well as Reps. Rosa DeLauro (Conn.), Suzan DelBene (Wash.) and Ritchie Torres (N.Y.).
Biden, however, has only expressed support in extending the child tax credit through 2025.
Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report and The Hill.