President Biden said Monday that parents will start seeing child tax credit payments of up to $300 next month.
The American Rescue Plan upped the child tax credit from $2,000 to $3,000 per child aged 6 to 17 and $3,600 for children under 6. Americans who qualify will automatically receive monthly payments via a check or direct deposit.
For children from 6 to 17, the credit is $250 per month, totaling $3,000. Families with children younger than 6 can receive as much as $300 per month.
Single taxpayers earning $75,000 or less or married couples earning less than $112,500 qualify for the tax credit. Anyone who has filed taxes and claimed a child on their returns will be enrolled in the program.
The administration says the tax credit could lift as many as 4 million families out of poverty.
“This tax cut will give our nation’s hardworking families with children a little more breathing room when it comes to putting food on the table, paying the bills, and making ends meet,” Mr. Biden said. “Nearly every working family with children is going to feel this tax cut make a difference in their lives, and we need to spread the word so that eligible families get the full credit.”
The president also encouraged those who qualify for the benefit to enroll before July 15, when the first payments are scheduled.
The administration also unveiled a new website, ChildTaxCredit.gov for people to register to receive benefits.
Vice President Kamala Harris promoted the benefit Monday during a visit to a summer camp in Pittsburgh. She was accompanied by Labor Secretary Marty Walsh.
The administration will dispatch senior officials to speak with local media outlets to push the tax credit.
“If we’re able to get every family signed up, it will mean significant tax relief for America’s working families, and will help bring us even closer to cutting child poverty in half,” Mr. Biden said.