This week, the family announced that it is sending letters to 36 million families who may qualify for the expanded Child Tax Credit that will begin in mid-July.
Investors in low and middle income can expect to receive $3,000 for every child under 6 years of age 17 and $3,600 for every child under age six under the expanded child tax credit, which was authorized earlier this year by President Biden's coronavirus relief bill.
The expanded amounts are tapered off when income hits $75,000 for individual money and $ 150,000 for married couples.
The IRS is notifying families who may be eligible based on the information they have not submitted on their federal income tax return for 2020 or 2019 if they have not yet submitted for last year.
If families earn too much to qualify for the sweetened tax credits, they can still receive the $2,000 credit for their children if their income is below $200,000 for singles and $400,000 for married couples.
Instead of an annual lump sum, family will receive a monthly payment equal to around $300 per child. On July 15, 2015, the remaining half of the credit will be paid out. In December 2021, the IRS will deliver the monthly payments until 15th in each month.
The remaining half will be credit towards the next year's taxes. All money left after the pay taxes will be paid directly to families.
For example, a family with a 10-year-old and a 4-year-old would be eligible for a credit of $6,600 if they earn less than $150,000. They would receive a credit of $550 per month until December and the third after $3,300 when they file their taxes in 2022.
Most recipients can expect to receive money via direct deposit around 80%. The IRS will also deliver the money with cash checks or a prepaid debit card.
The IRS has been told that 88% of the children living in the U.S. will qualify for the payments.