New monthly stimulus checks for families will start in July, IRS now says
As part of President Joe Biden's $1.9 trillion COVID relief package — the new law that has been giving most Americans $1,400 stimulus checks — working families can expect to receive up to $3,600 per child for 2021.
Half of that will come in the form of cash, as monthly payments due to start this summer. They'll be another kind of stimulus check, to help millions of parents deal with basic bills or pay down debt.
The money is the result of a temporary expansion of the child tax credit. IRS Commissioner Charles Rettig (pictured) had warned a few weeks ago that the new checks could be delayed, because the tax agency was overwhelmed. But this week, he offered Congress better news.
Every household with children that qualified for the latest, $1,400 stimulus check is set to receive the child credit cash.
If yours is a family headed by a couple earning less than $150,000 or an individual making under $75,000, you're slated to get a $250 monthly payment for each of your kids ages 6 to 17, from July through December. For children under 6, you’ll receive $300.
In total, depending on how old your kids are, you’ll receive a credit of either $3,000 or $3,600 for this year. The monthly payments will account for the first half, while the other half will be refundable next year when you file your taxes for 2021.
This temporary change to the credit provides families with up to $1,600 more per child that can be used however you like: for family expenses, debt, savings — or even investing. One popular investing account you could open for your kids would allow them to grow their savings merely by adding "spare change."