NEW: Monthly child tax credit payments to start hitting bank accounts July 15
- Thread starter Sad Bunny
- Start date
I aint say we aint gonna use that moneyMy guy
Now you wouldn’t mind sending yo kids payments to my cash app since y’all good over there
Voice of Reason
Veteran
I wonder how this will impact the “labor shortage”
Will people still continue to opt out returning to work?
Will people still continue to opt out returning to work?
#BothSides
The Biden administration will begin making monthly child tax credit payments in July.
The Biden administration will begin making monthly child tax credit payments in July.
The Senate majority leader, Chuck Schumer, and the House speaker, Nancy Pelosi, displayed the American Rescue Plan Act during a ceremony at the Capitol in March.Credit...Stefani Reynolds for The New York Times
The Biden administration will begin paying hundreds of dollars per month to millions of American families in July as it rolls out a refundable child tax credit that was created as part of the economic relief legislation Congress passed in March.
Democrats view the tax credit as central to their efforts to reduce poverty and income inequality in the United States. The program is expected to provide additional funds to 39 million households, and the Biden administration projects that it will lift five million children out of poverty this year.
Speaking at the White House on Monday, President Biden hailed the payments as a tax cut that would help the middle class.
“This tax cut sends a clear and powerful message to American families with children: Help is on the way,” Mr. Biden said.
The Treasury Department said on Monday that the temporary payments of up to $300 per month would begin on July 15. Families with children under 6 years old can receive the full payments, while those with children over 6 can receive up to $250 per month.
The size of the payments will be reduced based on income levels.
The money is an advance on expanded refunds that taxpayers are eligible to receive under the American Rescue Plan. Families are getting half of the money as monthly payments this year and will get the rest when they file their tax returns next year. The law increased the maximum size of the tax credit to $3,600 this year.
Mr. Biden wants to extend the benefit as part of his recently proposed American Families Plan.
As with the economic stimulus payments, the child tax credit money will be distributed by the Internal Revenue Service through direct deposit, checks or debit cards.
“We are getting you a tax cut this year, now, when you need it,” Mr. Biden said.
— Alan Rappeport
#BothSides
washingtonpost.com
Child cash benefit will begin hitting millions of parents’ bank accounts July 15
Jeff Stein
6-7 minutes
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 6 or older 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.
As part of the next covid relief bill, President Biden proposed an expanded child tax credit that would send direct payments to help struggling families. (Joy Yi/The Washington Post)
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.
The Biden administration is now working to implement that law. Congressional Democrats had intended to require the IRS to send the payments out monthly, a measure designed to accommodate families’ short-term income shocks. They were ultimately forced to leave the timing question up to the tax agency under the arcane rules of the legislative procedure they used to pass the measure. The IRS on Monday for the first time said they will be able to administer it on a monthly basis, in line with many Democrats’ original intention.
Biden proposed extending the enhanced child benefit through 2025 in the “American Families Plan” he introduced last month. He has also said the administration aims to make the new benefit permanent, although how Democrats would do so remains unclear.
Approximately half of children in “deep poverty” live in households that do not file taxes and therefore will be hard for the IRS to reach, according to the People’s Policy Project, a left-leaning think-tank. That could reduce the antipoverty impact of the legislation, with the White House’s estimates that the policy will halve child poverty likely a dramatic overstatement, the think-tank said.
“With two parents, two kids, that’s $7,200 in the pockets you’re getting to help take care of your family,” Biden said in his address to Congress in April. “And that will help more than 65 million children and help cut childcare poverty in half, and we can afford it.”
Conservatives have strongly criticized the measure, particularly because it changed the existing program by giving the same amount to parents who do not work as parents who do. Congressional Republicans have said the plan will discourage parents from working. Traditionally, both Democrats and Republicans have resisted giving direct cash benefits to non-working families -- a stance that began to shift during the pandemic, when Congress on a bipartisan basis sent hundreds of billions in stimulus payments.
The expanded credit is estimated to cost approximately $150 billion per year, according to the Committee for a Responsible Federal Budget, a nonpartisan think-tank.
“Democrats chose ... simply handing out cash to parents, including ones already on welfare or in households where nobody is working,” Sens. Marco Rubio (R-Fla.) and Mike Lee (R-Utah) said in a statement last month. “This kind of universal basic income makes more Americans dependent on government and severs the vital elements — work, marriage, community, and beyond — required to raise healthy families.”
Significant implementation problems loom that could hamper the program’s effectiveness. Eligibility is based on prior year income status, which is necessary for the IRS to prevent rich Americans from receiving the benefit. But that decision opens up other implementation challenges, as family income and custodial status can change frequently.
Administration officials also told reporters Sunday they will create two separate online portals to help Americans receive their payments from the IRS. One is for Americans who do not traditionally file income taxes. It would in particular help poor Americans and groups that work with the homeless to secure their new benefit. The second, separate portal will allow families to tell the IRS about changes in custodial status, or for the family to tell the IRS it wants to receive the benefit in full at tax time at the end of the year rather than on a monthly basis.
These measures could still prove difficult to implement. However, administration officials stressed that the vast majority of families had to do nothing to receive the benefit.
datnigDASTARDLY
catching pigeons
My 4 year old will be 5 by the time this passes and my oldest is 8.
We fully intend to use it for the kids...Disney'll be in their future
SleezyBigSlim
Banned
How much tho?
levitate
I love you, you know.
So we won’t be able to claim it come tax season next year?
Brehs tax payment as bout to pop up next year.
UserNameless
Veteran
I find it funny that so called Black ppl diss other Black ppl for havin kids and the fact they think every Black person with kids is struggling
We good over here
Talk yo shyt , Buck !
Grown ass men more bitter than the average lonely broad over someone getting help. Some of you nikkas straight up sad. 
Elim Garak
Veteran
I don't have any kids but that's dope as hell.
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