NATIONAL NEWS

First Enhanced Child Tax Credit Payments To Go Out July 15

May 17, 2021, 9:54 AM
The families of more than 65 million children will start receiving enhanced child tax credit monthl...
The families of more than 65 million children will start receiving enhanced child tax credit monthly payments of up to $300 on July 15, the Biden administration announced May 17. (Shutterstock)
(Shutterstock)

(CNN) – The families of more than 65 million children will start receiving enhanced child tax credit monthly payments of up to $300 on July 15, the Biden administration announced Monday.

The temporary benefit, which will be sent to 39 million households and covers 88% of children in the US, stems from the Democrats’ $1.9 trillion coronavirus rescue package. The vast majority of families will receive the funds via direct deposit, while the rest will get checks or debit cards in the mail.

The Internal Revenue Service will send the payments on the 15th of the month, unless it falls on a holiday or weekend, through December. Eligible parents will receive $300 a month for each child under age 6 and $250 for each one ages 6 to 17.

To reach low-income households that don’t typically file taxes, the agency is setting up a portal to allow them to submit their information. This will allow them to claim both the enhanced child tax credit and stimulus payments they might have missed. A similar online form existed last year to allow low-income Americans to receive the first round of stimulus checks from the March 2020 relief package.

Meanwhile, the IRS will also launch a separate portal to allow parents to update their address, bank account information and family size, as well as opt out of the monthly payments in favor of receiving the tax credit as a lump sum next year when they file their return.

More details about the portals will be announced in coming weeks, a senior administration official said. The administration also plans to launch an outreach campaign to inform families about the enhanced payments and the portals.

A Bigger Boost For One Year

Under the American Rescue Plan, families can receive a credit totaling $3,600 for each child under 6 and $3,000 for each one under age 18 for 2021. This is up from the current credit of up to $2,000 per child under age 17. The enhanced portion of the credit will be available for single parents with annual incomes up to $75,000, heads of households earning $112,500 and joint filers making up to $150,000 a year.

The package also makes the tax credit fully refundable so that more low-income parents can take advantage of it. Until now, it has only been partially refundable — leaving more than 20 million children unable to get the full credit because their families’ incomes are too low.

Lawmakers also wanted to make it easier for parents to use the funds to cover their expenses during the year. So the law calls for sending families half the credit on a monthly basis, from July through December. They will then claim the other half on their 2021 tax returns.

Initially, the IRS was uncertain whether it would be able to provide the credit on a monthly basis starting in July, but Commissioner Charles Rettig told lawmakers last month that the agency is on track to meet that deadline.

The enhanced child tax credit alone is expected to cut child poverty nearly in half. In total, the Democrats’ relief package is projected to reduce the share of kids in poverty by more than half, lifting more than 5 million children out of poverty this year.

Democratic lawmakers have been pushing the Biden administration to make the beefed up credit permanent, but President Joe Biden’s latest proposal, the American Families Plan, would only continue the increased payments through 2025. The plan would make the credit fully refundable permanently.

The provision is projected to cost roughly $110 billion a year.


The-CNN-Wire
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

KSL 5 TV Live

Top Stories

National News

FILE: U.S. Secretary of Defense Lloyd Austin speaks during a news briefing at the Pentagon July 21,...
TARA COPP, Associated Press

Keep COVID military vaccine mandate, defense chief says

Defense Secretary Lloyd Austin is making clear he wants to keep the military’s COVID-19 vaccine mandate in place to protect the health of the troops.
1 day ago
(Photo by Bethany Clarke/Getty Images)...
Brian Fung, CNN

Released Twitter emails show how employees handled 2020 New York Post Hunter Biden story

Elon Musk teased Twitter users a few days ago with the promise of information on Twitter's content moderation policies, now known as the "Twitter Files."
1 day ago
The former Utah man and pilot, Dan Ragan....
KSL TV

Utah resident remembers pilot killed in Dallas Air Show crash

The former Utah man who tragically passed away in a deadly air show crash in Texas is being remembered by neighbors and friends. 
1 day ago
Tanner Lynn Horner, 31, a driver working for FedEx was arrested and charged in the kidnapping and k...
Tina Burnside, CNN

Texas FedEx driver is arrested in the kidnapping and killing of a 7-year-old girl

A driver working for FedEx was arrested and charged Friday in the kidnapping and killing of a 7-year-old girl who had disappeared from her home's driveway in Texas earlier this week, police said.
1 day ago
Noodle, the pug, is held....
Zoe Sottile, CNN

Noodle, the TikTok-famous ‘bones or no bones’ pug, has died

(CNN) — Noodle, the geriatric pug who captured hearts across the internet for his “bones or no bones” ritual, has died at age 14, his owner says. Jonathan Graziano, Noodle’s owner, announced that his beloved dog died on Friday, in a tearful update posted to his TikTok and Instagram. “This is incredibly sad, it’s incredibly […]
1 day ago
Rapper Takeoff with a microphone...
LEKAN OYEKANMI and JAKE BLEIBERG Associated Press

Man arrested in fatal shooting of Migos rapper Takeoff

Police in Texas have announced an arrest in last month's shooting death of the performer Takeoff. Houston police said Friday that 33-year-old Patrick Xavier Clark was charged with murder and has been arrested in connection with the rapper's death. Born Kirsnick Khari Ball, Takeoff was the youngest member of Migos, the Grammy-nominated rap trio from suburban Atlanta that also featured his uncle Quavo and cousin Offset. Police have said the 28-year-old was fatally shot outside a bowling alley after a private party. Police said Friday that the shooting followed a dispute over a game of dice, but that Takeoff was not involved and was an innocent bystander.
1 day ago

Sponsored Articles

house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
First Enhanced Child Tax Credit Payments To Go Out July 15