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Joe Biden:-Increased monthly child tax credit(2020-2021) payments to start in mid-July(2021)

Joe Biden:-Increased monthly child tax credit(2020-2021) payments to start in mid-July(2021)

Millions of middle and low-income families across the country will begin receiving monthly payments starting in mid-July2021 as part of the new, fully refundable child tax credit(2019-2020/2021). The first payments will be made on July 15, 2021 and later payments will go on to be made monthly through the end of the year, the Treasury Department and I.R.S announced on Monday,2021.

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Approximately, 39 million families will start getting automatic child tax credit payments. That covers more than 65 million children, accounting for about 88% of all child care tax credit in the U.S., according to the Joe Biden administration.  Selected and Eligible families will get payments of up to $300 a month for every child under the age of 6 and up to $250 a month for every child ages 6 to 17( under american rescue plan child tax).

The automatic child tax credit 2021 monthly advanced payments were included as part of the American Rescue Plan Child Tax passed in March to provide relief for Americans amid the Covid-19 pandemic. The Biden administration said the legislation is estimated to lift more than 5 million children out of poverty this year, cutting child poverty by more than half under child tax credit phase-out.

The legislation enhanced the maximum child tax credit-2021 from $2,000 to $3,600 for children under 6 and $3,000 for children 6 and up(child tax credit). It also made the credit amount fully reversible and turned half of the credit into advanced payments(child care tax credit 2020). 

The payments administered by the I.R.S will be made through direct deposit into the account, paper check and debit cards. Payments will be given on the 15th of each month unless that date falls on a weekend or holiday, the Treasury Department of the US said.

Under the American Rescue Plan-2021, persons making up to $75,000, single-parent head of household filers making up to $112,500 and married couples who file together with a combined income of up to $150,000 per year are eligible to receive the full amount.

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The American Rescue Plan(child care tax credit 2020) is delivering critical tax relief to the middle class and poor working families with children, President Joe Biden said in his statement. In today's announcement, about 90% of families with children will get this new tax relief automatically, starting in July under (child tax credit 2018). While the American Rescue Plan-2021 provides for this important tax relief to poor and hard-working families for this year, US Congress must pass the American Families Plan to ensure that working families will be in a position to count on this relief for years to come. For poor and working families with children(child tax credit 2018), this tax cut sends a clear message: help and assistance is here.

Joe Biden's proposed American Families Plan-2021, introduced last month, calls for extending the increased child tax credit through 2025 and making it permanently fully reversible.

Some  Democratic legislatures are pushing to make the monthly child tax credit payments permanent. Joe Biden has given a sign he would wish to as well, but questions remain to stand on how to pay for the provision, which could estimate more than $100 billion a year, according to the Non-partisan Joint Committee on Taxation(NPJCT). 

Meanwhile, some organizations that work with low-income and poor families have already raised some questions that some of the most vulnerable families now eligible for the payments will not get them without a durable increase effort. That's because some families who are eligible for the credits are not in the I.R.S System because they earn too little money to be required to pay taxes for their country.


Child Tax Credit 2021: Who gets $3,600 and 5 other must-know key facts.

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