It appears that the Internal Revenue Service and the Treasury Department are in the final innings of disbursing the remaining coronavirus stimulus checks under the American Rescue Plan to eligible U.S. taxpayers.
But do not fret—more stimulus cash will be soon heading into bank accounts of American parents.
Essentially creating a “fourth” stimulus check, the IRS has already confirmed that monthly payments from the new $3,000 or $3,600 child tax credit will be delivered to financially strapped parents beginning in July.
This is now possible because President Joe Biden’s $1.9 trillion legislation expanded upon the child tax credit that generally allowed families to claim a credit of up to $2,000 for children under the age of seventeen.
That particular benefit has been extended to lower-income families who otherwise wouldn’t receive such a credit.
Because of this change, families are now eligible to claim as much as $3,600 per year for a child under the age of six and up to $3,000 annually for children between six and seventeen.
This means for a family headed by a couple earning less than $150,000 or an individual making under $75,000, they are now eligible to receive a $250 or $300 payment every month.
“We will launch by July 1 with the absolute best product we are able to put together,” IRS Commissioner Chuck Rettig recently said on the Senate floor.
“We are trying to get it as user-friendly as possible,” he added.
But Rettig did admit that launching a new program like this can potentially bring about unique challenges, stating that “we will not risk our system.”
In one particular scenario under the legislation, a family of four making less than $150,000 could potentially expect to net more than $14,000 in coronavirus pandemic relief this year alone.
Furthermore, know that tax credits have been extended for another year to help offset the cost of child care. Families could get back as a tax credit as much as half of their overall spending on child care for children under the age of thirteen, up to $4,000 for a single child, and $8,000 for two or more children.
Also, take note that there could be even more monetary assistance on the way when Biden on Wednesday outlines his ambitious plans to boost the economy, help rebuild infrastructure, and offer increased funding for education, child care, and paid family leave.
The massive $1.8 trillion American Families Plan is expected to further extend the child-tax credit—potentially giving parents and legal guardians a total of up to $16,200 of cash per child. Those with children living at home could receive a monthly $300 check for each child through the end of 2025.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.
$3,000 Stimulus Check This Summer? Why More Money Is Coming. is written by Ethen Kim Lieser for nationalinterest.org