Next Stimulus Payments Hit July 15 And The IRS Just Made It Easier For Some People To Track Payments
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The next round of stimulus payments – targeted at families – is scheduled to hit the bank accounts of qualifying families July 15, according to a new statement from the White House.
The expanded credits are part of President Joe Biden’s American Rescue Plan.
According to the official IRS website, “nearly all” working families will start seeing $250 to $300 per child automatically deposited into their bank accounts or sent to their mailboxes starting on July 15.
The payments will be distributed monthly, starting on July 15, followed by August 13, September 15, October 15, November 15 and December 15.
The original child tax credit was $2,000 for most families but the newly expanded amount raises the stimulus payment to $3,000 per child (age 6 and older) and to $3,600 for children younger than age 6.
“Rather than receiving the money as a lump-sum,” explains the National Interest website, “parents with children under the age of 6 will get $300 monthly payments per child from July through December, and those with children between the ages of 6 and 17 will receive $250 payments per child.”
Couples making less than $150,000 and single parents making less than $112,500 also qualify for the full benefit.
For income above those levels, the extra amount above the existing $2,000 credit is reduced by $50 for every extra $1,000 modified AGI.
To make the process easier, the IRS and Treasury Department launched an online tool earlier this week for low-income families who qualify for the child tax credit.
Agency officials explained that “the portal can help those who did not receive but are eligible for the three rounds of stimulus payments from pandemic-related legislation.”
The first payment on July 15 is expected to help nearly 36 million American families.
“At Treasury, our goal is to make sure that every American can get the relief funding they need as simply as possible,” Treasury Secretary Janet Yellen said in a statement. “We know working families can’t put off paying for doctor’s visits or grocery bills, and this new tool will help more people get their tax credit every month, starting in July.”
A majority of the July 15 payments will be issued by direct deposit. Some stimulus payments to families will be sent out in the form of a check or prepaid debit card.