World News | About 88 Per Cent of Children Qualify for Monthly Payments in July

Washington, May 17 (AP) 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 USD 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 per cent of children are set to receive the benefits without their parents needing to take any additional action.

Qualified families will receive a payment of up to USD300 per month for each child under 6 and up to USD250 per month for children between the ages of 6 and 17. The child tax credit was previously capped at USD2,000 and only paid out to families with income tax obligations after they filed with the IRS.

But for this year, couples earning USD150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit. The benefits total USD3,600 annually for children under 6 and USD3,000 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 USD1.8 trillion families plan. Outside analysts estimate that the payments could essentially halve child poverty. The expanded credits could cost roughly USD100 billion a year. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)