The Biden administration has now shared an important announcement involving the date when millions of families will start getting a new stimulus check on a monthly basis going forward, as a byproduct of the $1.9 trillion stimulus law that was enacted back in March.
We’ve noted on a number of occasions now how big a deal it is that the federal child tax credit was expanded as part of that stimulus law, given that it will now provide families as much as $3,600 over the course of a year for each eligible child. That will be done via monthly checks, which the Biden administration now says will start being sent out on July 15. And depending on the age of the children, those checks will generally be for either $250 or $300 per child.
The IRS explained by way of a reminder that for tax year 2021, families claiming the newly expanded federal child tax credit will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6. Before the stimulus law expanded those amounts, the amount of the child tax credit was up to $2,000 per qualifying child under the age of 17.
These new stimulus checks that are about to start being sent out on a recurring basis, we should add, will cover a large swath of the country. The Treasury Department estimates that around 39 million households, tantamount to some 88% of the country, will start receiving these checks — and without any proactive action needing to be taken on the part of the recipients.
According to the announcement from the Treasury Department, these payments will be made on the 15th of each month, starting in July, unless the 15th falls on a weekend or holiday. This will allow “families who receive the credit by direct deposit to plan their budget around receipt of the benefit.” The Treasury Department goes on to note that “Households covering more than 65 million children will receive the monthly (child tax credit) payments through direct deposit, paper check, or debit cards, and Treasury and the IRS are committed to maximizing the use of direct deposit to ensure fast and secure delivery.
“While most taxpayers will not be required to take any action to receive their payments, Treasury and the IRS will continue outreach efforts with partner organizations over the coming months to make more families aware of their eligibility.”
These new stimulus payments represent an addition to the wave of stimulus checks already sent out by the Biden administration since March 12, which has included a total of 165 million stimulus checks distributed since that time with an aggregate value of around $388 billion. The IRS announced just a few days ago that the ninth wave of stimulus checks since the enactment of the so-called American Rescue Plan on March 11 has just been sent out, a wave that includes nearly 1 million stimulus payments.