Here's What You Need to Remember: Know that these enhanced credits were made possible due to Biden’s $1.9 trillion stimulus bill, which now allows eligible parents to collect as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen.

For those Americans who have become comfortable with receiving their coronavirus stimulus checks in the form of prepaid debit cards, be aware that there is a big change coming.

According to the Internal Revenue Service and Treasury Department, the first rounds of the expanded child tax credits under President Joe Biden’s American Rescue Plan will only be disbursed via direct deposit or paper check—though this could change in the future.

The agencies added that a portal will be set up later this month to track the paper checks.

Most families, though, won’t need to take any more action before the first pay date of July 15. An estimated eighty percent of all eligible households will receive their monthly payments via direct deposit because they already have their necessary information on file at the tax agency. For those who don’t, they should file a tax extension and complete their returns by October 15.

The IRS has also taken the initiative to help the nation’s lowest-income earners who often don’t make enough money to have to file taxes. Therefore, a tool was “developed … (and will provide) a free and easy way for eligible people who don't make enough income to have an income tax return-filing obligation to provide the IRS the basic information needed.”

Do keep in mind that there will be another portal that will be launched by July 1 to help individuals update and adjust their information and any changes to the number and age of child dependents.

“Individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible,” the agency noted.

Parents should also be on the lookout for two letters that have been mailed out by the IRS. The first letter went out to those who may be eligible to receive the monthly credit payments. Then the second, more personalized letter will state the estimated amount of their monthly checks.

Know that these enhanced credits were made possible due to Biden’s $1.9 trillion stimulus bill, which now allows eligible parents to collect as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen.

This means that a $250 or a $300 direct cash payment for each child will head into the bank accounts or mailboxes of parents every month till the end of the year.

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn. This article first appeared earlier this year.

Image: Reuters