Child cash benefit will begin hitting millions of parents' bank accounts July 15
Source: Washington Post
The Biden administration announced Monday that roughly 39 million American families will begin receiving direct cash payments in July under a new child benefit created by Democrats’ coronavirus relief bill.The Internal Revenue Service will on July 15 start delivering a monthly payment of $300 per child under 6 and $250 per child older than 6 for those who qualify.
The monthly benefits will be deposited directly in most families’ bank accounts on the 15th of every month -- or the closest day to that date, if the 15th falls on a holiday or weekend -- for the rest of the year, without any action required. For instance, an eligible family with two children aged 5 and 13 will receive $550 from the IRS directly to their bank accounts on or close to the 15th of every month from July to December.
Biden administration officials estimate that households representing more than 65 million children -- or 88 percent of all U.S. kids nationwide -- will begin receiving the benefit through direct deposit, paper checks, or debit cards. Of that population, roughly 80 percent of that population will be sent the cash directly via direct deposit, administration officials told reporters on a call Sunday. High-income parents will receive a smaller benefit or none at all, depending on how much they make. The credit diminishes for individuals with adjusted gross income of more than $75,000, as well as couples earning more than $150,000.
The new program represents one of the most important Biden domestic policy initiatives and could have significant political consequences as the White House seeks to reshape the U.S. economy. In March, Congressional Democrats approved a $1.9 trillion relief plan that expanded an existing $2,000-per-child benefit, increasing its annual value to $3,600 per child under 6 and to $3,000 for older children. The benefit was also expanded to cover tens of millions of low-income families who were previously too poor to receive it in full. America has had one of the highest child poverty levels among rich nations, something supporters of the expanded benefit hope to change.
Read more: https://www.washingtonpost.com/us-policy/2021/05/17/biden-child-tax-benefit/
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