Getty Images/iStockphoto

The IRS will begin making direct deposits of the new extended child tax credit payments today, July 15, through December 15.

The payments are part of the $1.9 trillion American Rescue Plan signed into law by Pres. Joe Biden.

The maximum credit amount has increased to $3,600 per qualifying child under age 6 and $3,000 per qualifying child between ages 6 and 17.

The IRS will pay half of the total credit amount in advance monthly payments of $250 or $300 based on the child's age beginning July 15. Parents can claim the other half on their 2021 tax returns in April 2022.

RichVintage / E+ / Getty Images

The child tax credit is a fully refundable tax credit. But some families may have to pay some of the money back.

Individual wage earners with adjusted gross income (AGI) over $75,000 annually or couples earning over $150,000 annually are not eligible.

The credit will be reduced by $50 for every additional $1,000 of income over those limits.

For example, the $3,000 credit for a child aged 6 to 17 would be phased out completely for individuals earning $95,000 and for couples earning $170,000 and filing jointly.

JGI/Jamie Grill/Getty Images

You don't have to be employed to receive the child tax credit. Parents who earn less than the minimum income or no income at all can still file to receive the expanded child tax credits. To do so, visit the IRS Child Tax Credit Update website here.

The increased child tax credit ends on December 15, 2021. But Biden will push Congress to extend the payments until 2025. Some Democrats vowed to make the increased child tax credit permanent.

RichVintage / E+ / Getty Images

The IRS and the U.S. Department of Treasury announced the first monthly payments of up to $300 will go out on July 15 to 88% of children in the U.S.

The expanded Child Tax Credit payments are part of the Biden administration's foray into Universal Basic Income, a poverty-fighting measure.

The payments will be made on the 15th of each month to families who qualify -- about 39% of the population.

JGI/Jamie Grill/Getty Images

President Joe Biden's Treasury Department announced Monday it will start sending monthly child tax credits to 39 million families on July 15. Couples earning $150,000 or less qualify for the expanded benefits under the $1.9 trillion American Rescue Plan, which was signed by Biden in March.

They will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. Annual benefits for parents could reach upwards of $3,000 per kid depending on their age. Source

The payments will be made via checks and direct deposit every month, starting on July 15. The Biden administration hopes the benefits will lift 65 million American children out of poverty.

The Biden administration has asked Congress to increase the Child Tax Credit payments through 2025.

Correction: An earlier version of this post stated children would receive up to $3,600 in monthly stimulus payments. The actual amount is $300 in monthly payments.

TEXT