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.
Snap Inc. has a message for its employees: if you leak company information, you could go to jail. Amazon announces it will increase prices on monthly Prime memberships by 20%. Facebook recently announced it will change the News Feed to favor posts from friends and family over posts from publishers. And the clock is ticking for Congress to extend funding and avoid a government shutdown.
Arianna Huffington explains how it helps people combat their smartphone addiction. Amazon narrows the list of cities for HQ2. Facebook announces details of its community outreach program. Whatsapp announces it will allow business accounts. In a Cheddar scoop, Snapchat is laying off dozens of workers. The government shutdown looms. IBM, Atlassian, American Express release earnings.
Mozilla joining the fight to save net neutrality. The open source web browser filed a petition this week, challenging the Federal Communication Commission's vote to roll back Obama-era protections. Mozilla's Senior Policy Manager Heather West explains what the company is hoping to accomplish with this petition.
On VF Hive: We’re joined by the crew from Vanity Fair's Hive to discuss Bannon's Mueller investigation subpoena. On Between Bells: Winter Olympics diplomacy, and Ellen Pompeo's payday. With New York Magazine, Latina Magazine, and FHM.
The Federal Communications Commission voted along party lines to reverse Obama-era internet regulations, potentially changing the way Americans use the internet. Sarah Morris is the Director of Open Internet Policy at New America's Open Technology Institute, a group fighting the FCC ruling.
The Hive co-host Kristen Scholer discusses the five biggest news stories in politics and tech. From Steve Bannon cooperating with Robert Mueller, to Facebook's new algorithm, we have it all covered on The Hive.
The House is scheduled to vote on a short-term budget deal Thursday afternoon, but the latest count shows that House GOP leaders don't have enough votes. Reason Magazine Editor-at-Large Matt Welch explains why a government shutdown "may happen by accident."
The Times reported this week that the U.S. military was quietly preparing for the possibility of war with Pyongyang. Joel S. Wit, Senior Fellow at the U.S.-Korea Institute at Johns Hopkins and author of "Going Critical: The First North Korean Nuclear Crisis," joins The Hive to discuss what Americans need to worry about...and what they don't.
Apple is planning to invest big in the U.S. economy over the next five years. Amazon announces a list of 20 candidates for its HQ2. Carter Reum, entrepreneur and author of the new book "Shortcut Your Startup," joins us to share his tips on turning your idea into a successful business. Plus, we get the latest on the fight to preserve net neutrality.
Michael Harriot, columnist at The Root, discusses the future of DACA as funding for the government is set to run out soon.
