39 million families to get monthly child payments beginning in July

WASHINGTON — The Treasury Department said Monday that 39 million families are set to receive monthly child payments beginning on July 15.

The payments are part of President Joe Biden’s $1.9 trillion coronavirus relief package, which expanded the child tax credit for one year and made it possible to pre-pay the benefits on a monthly basis. Nearly 88 percent of children are set to receive the benefits without their parents needing to take any additional action.

“This tax cut sends a clear and powerful message to American workers, working families with children: Help is here,” Biden said.

Qualified families will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. The child tax credit was previously capped at $2,000 and only paid out to families with income tax obligations after they filed with the IRS.

But for this year, couples earning $150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit. The benefits total $3,600 annually for children under 6 and $3,000 for those who are older. The IRS will determine eligibility based on the 2019 and 2020 tax years, but people will also be able to update their status through an online portal. Officials are also setting up another online portal for nonfilers who might be eligible.