The Internal Revenue Service (IRS) will begin sending monthly payments to families of the new $ 3,000 child discount from July.
IRS Commissioner Charles Rettig confirmed the timeline during congressional testimony Tuesday, telling the Senate Finance Committee, “If we are not on track for an unforeseen situation, we will advise you and the committee.”
The child discount extension was included in the $ 1.9 trillion stimulus package President Biden
Joe BidenIRS To Roll Out Payments Of 000 Child Tax Credit In July Capitol Police Told Not To Use Most Aggressive Tactics In Riot response, report finds Biden to accompany first lady to appointment for ‘common medical procedure’ signed into law in March. The law provides families with $ 3,000 per child between the ages of 6 and 17 and $ 3,600 per child under 6 for the 2021 tax year.
The credit is made available to individuals earning less than $ 75,000 or couples earning less than $ 150,000 together. Payments are phased out gradually as income increases, ending with individuals making $ 95,000 and couples making $ 170,000.
Payments are made in monthly intervals and run through December. Those with older children will see payments come in in $ 250 increments, while those with children under 6 will receive their payments in $ 300 bundles.
People above the threshold can still get the regular tax credit, which would bring in $ 2,000 per child under 17 for people making less than $ 200,000 per year or couples making less than $ 400,000.
Rettig had warned that the IRS might not be able to start sending the payments in July, as a lengthy tax season had flooded his agency.