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Here’s how the Biden administration is trying to reach families eligible for monthly child tax credit payments


The Biden administration is stepping up efforts to ensure taxpayers eligible for monthly child tax credit checks get them when the first payments begin next month. More than 36 million eligible families are expected to start seeing payments made under the US bailout on July 15.

Children under six will receive payments of $ 300 per month until the end of the year, while children six to 17 will receive payments of $ 250 per month. On Friday, the Biden administration announced it would work with officials, faith-based organizations and groups that work with children to ensure low-income families who would otherwise fall through the cracks because they don’t are not part of the tax system are able to receive the credit.

“We want to make sure that every family with children who is eligible for this tax credit receives it because of course they deserve it,” Vice President Kamala Harris said, speaking of the benefit on Friday at a visit to a daycare. “And because it will help us lift half of these children… living in poverty, out of poverty.”

In addition to increasing the parent credit from $ 2,000 to $ 3,000 per child aged 6 to 17 and $ 3,600 for children under six for this year, the 2021 child tax credit has It was also expanded so that low-income families who otherwise earned too little to pay tax would still be eligible for monthly payments.

Earlier this week, the IRS announced it would send the first in a series of letters to families regarding their potential eligibility for the child tax credit based on their 2019 or 2020 tax returns or others. information they could have provided to the IRS.

IRS Commissioner Charles Rettig told members of the Senate Finance Committee on Tuesday that his agency was also working with “thousands and thousands” of community organizations to disseminate information in multiple languages. Rettig said much of the outreach effort is based on what they have learned while working over the past year to administer the three rounds of economic stimulus payments, which he says are now ” affected in the street like the stimuli “. These direct COVID relief payments first started under President Trump amid the pandemic, and then continued with the latest round of stimulus funds from the American rescue plan spent in March.

“We have been fortunate to interact with over 10,000 different organizations across the country that were previously not interactive with the Internal Revenue Service based on our core processes,” said Rettig. He said the agency was able to leverage it for child tax credit payments.

According to the IRS, most families won’t need to take any action to get their payment. The vast majority of payments will be made by direct deposit, and in some cases, the IRS will send checks and debit cards to families by mail.

Under the American Rescue Plan, people earning up to $ 75,000, single parents filing up to $ 112,500, and married couples who jointly file with a combined income of up to $ 150,000 per year are eligible to receive the full amount.

Families will be able to check if they are eligible through one of the many online tools the IRS is launching before the first payments next month. Another portal will also allow families to update information and opt out of receiving payments in advance, as well as check the status of payments later this year.

On Thursday, Democrats on the House Ways and Means Committee released their own information and frequently asked questions about the child tax credit to help prepare families for the first out-of-pocket payments.

“Almost 90% of children in our country will feel the positive effects of the Expanded Child Tax Credit, a key part of the Congressional COVID relief bill drafted by Democrats on the Ways and Means Committee. These advance payments of this credit will ensure families have this crucial support when they need it most, while dramatically reducing child poverty, ”Ways and Means Committee Chairman Richard Neal, a Democrat from Massachusetts, said.

While direct advance payments only apply until the end of this year, the Biden administration has already offered to extend the increased tax credit as part of its U.S. plan for families, and some Democrats are pushing to make the change permanent. Several Republicans, including Utah Senator Mitt Romney, have come up with their own versions of monthly children’s payments.

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