The government chaired by Joe Biden announced this Monday that it will send
monthly
payments
of
up to $ 300
, for each child under 6 years of age, and up to 250, for those over 6 years old, starting
July 15
.
Initially, families were to receive this credit as part of their tax refund, but this monthly system will allow families to better plan their income, Administration officials said.
In total, parents / guardians will receive direct payments of $ 3,600 per year for each child under the age of 6 and $ 3,000 per year for each child between the ages of 6 and 17.
This measure is part of the expansion of the child tax credit, included in the US $ 1.9 bailout plan that the president signed in March.
Since payments begin in the middle of the year, families will receive the second part of their 2021 payments as a
tax refund.
Some
39 million households
- about 88% of the country's children - will benefit from the program, officials said.
What do I have to do to receive the monthly payment?
About 80% of eligible families
already have direct deposit enrolled
, so they don't need to take any additional steps to receive their payments.
The remaining 20% will receive payments by check or debit card.
The eligibility criteria are the same as those for direct mailing of checks of $ 1,400 per person.
That is, those parents who earn
less than $ 75,000 a year
and couples who earn
less than $ 150,000.
These amounts would decrease for those who earn more than previously stated, according to the Internal Revenue Service (IRS).
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The officials stressed that the Administration has worked to make this process more agile and easier for people to navigate, following previous complaints about delays in stimulus checks.
Although, as this is an entirely new program, officials cautioned that some setbacks are likely to remain.
In addition, the Administration will participate in an outreach strategy to help families take advantage of this new program.
“The American bailout plan is providing critical fiscal relief to struggling middle class and working families with children.
With today's announcement,
around 90% of families with children will get this new tax relief automatically, starting in July
, ”the president said in a statement.
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The president noted that while the US bailout plan provides this vital tax relief to working families for this year, Congress must pass the American Family Plan to ensure working families can count on this relief for years to come.
Plan for American Families
The plan consists of an approximately
$ 1.8 billion
package
that includes
universal preschool, two years of
free
community college,
and increased access to child care.
It's the second of two phases in Biden's effort to boost the economy, following the $ 1.9 trillion jobs and infrastructure package he announced last month.
The plan seeks to
expand until 2025 the tax credit of up to $ 3,600 per child
and guarantee at least four more years of free education for all students in the country.
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It also includes about $ 200 billion to guarantee access to preschool for all children between the ages of 3 and 4.
The total amount of 1.8 trillion dollars would be paid in full in 15 years through an increase in taxes on the richest and a legal strategy to avoid tax evasion,
That plan is expected to help lift
more than 5 million children out of poverty.
"For working families with children, this tax cut sends a clear message: help is here," Biden added in his statement.
