By Josh Boak
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% 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 in remarks at the White House.
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. The administration is also setting up another online portal for non-filers who might be eligible for the child tax credit.
The president has proposed an extension of the increased child tax credit through 2025 as part of his $1.8 trillion families plan. Outside analysts estimate that the payments could essentially halve child poverty. The expanded credits could cost roughly $100 billion a year.
Updated on May 17, 2021, at 2:06 p.m. ET with the latest details.
These are the headlines you Need 2 Know for Friday, Dec. 21, 2018.
As Cheddar reflects on 2018, we are profiling the most innovative, flamboyant, and often-controversial entrepreneurs and corporate leaders who delivered the year's most memorable moments in business. Of the CEO Class of 2018, who was crowned Biggest Flirt? Class Clown? Cheddar's Most Outspoken Award Goes to Tim Cook.
Stocks plunged on Thursday for the second day running, as the renewed threat of a government shutdown over the Christmas holiday weekend contributed to residual market weakness after the Fed's latest rate hike.
CEO Mary Barra made national headlines when General Motors announced in late November that 14,000 salaried and hourly workers would be cut for the sake of the company's growth. Backlash against Barra was swift; it populated the White House Twitter feed and echoed through the hall of Congress.
These are the headlines you Need 2 Know for Thursday, Dec. 20, 2018.
Facebook can add another problem to its tally: a disappointing update to a civil rights audit the company posted on Tuesday, just hours before The New York Times published an explosive report on the company's mishandling of user data. The audit has been a "black box," according to Rashad Robinson, the president of Color of Change, one of the groups that has strongly criticized Facebook over civil rights issues on the platform.
Stocks plunged following the Federal Reserve's decision to hike interest rates for the fourth time this year, despite heavy criticism from President Trump that the central bank has been too aggressive in raising borrowing costs.
New York Governor Andrew Cuomo may have radically changed his stance on marijuana ー but his former Democratic primary opponent Cynthia Nixon shouldn't be congratulated for his shift, according to New York State Assembly Health Committee chair Richard Gottfried. "On this particular issue, I don't think she gets any credit," Gottfried, who has been working on marijuana policy reform since the 70s, told Cheddar Wednesday.
These are the headlines you Need 2 Know for Wednesday, Dec. 19, 2018.
Michael Bloomberg wants to be president, his former campaign manager Bradley Tusk told Cheddar on Tuesday. "Just putting all cards on the table: Mike would like to be president, Mike would be an excellent president," Tusk said.
