Treasury: First expanded Child Tax Credit payments to go out July 15

The Biden administration said Monday the first round of payments from the expanded Child Tax Credit will go out on July 15.

The Treasury Department said roughly 39 million households, covering 88% of children in the U.S., will begin receiving the monthly payments without doing anything.

Future payments will arrive on the 15th of each month, the Treasury announced, allowing families who receive the advanceable credit by direct deposit, paper check or debit card to anticipate it and plan their budgets around it.

President Biden’s $1.9 trillion pandemic relief package increased the tax credit for 2021 to $3,000 per child age 17 and younger — up from $2,000. It provides an additional $600 benefit for children under age 6, meaning a total of $3,600 each.

“The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half,” a Treasury news release says.

Eligible families should expect a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older.

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SEE ALSO: Top Democrats pile on campaign to make child tax break that was expanded now permanent

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The expanded child tax credit is supposed to last only for tax returns filed in 2021, but lawmakers are trying to extend it as part of Mr. Biden’s $1.8 trillion American Families Plan.

The tax credit is designed to lift up families based on how many dependents they have. It has bipartisan appeal and was also expanded as part of the GOP tax overhaul in 2017.