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First enhanced child tax credit payments to go out July 15

The families of more than 65 million children will start receiving...

Posted: May 17, 2021 6:58 AM
Updated: May 17, 2021 11:45 AM

The families of more than 65 million children will start receiving enhanced child tax credit monthly payments of up to $300 on July 15, the Biden administration announced Monday.

The temporary benefit, which will be sent to 39 million households and covers 88% of children in the US, stems from the Democrats' $1.9 trillion coronavirus rescue package. The vast majority of families will receive the funds via direct deposit, while the rest will get checks or debit cards in the mail.

The Internal Revenue Service will send the payments on the 15th of the month, unless it falls on a holiday or weekend, through December. Eligible parents will receive $300 a month for each child under age 6 and $250 for each one ages 6 to 17.

Payments will be based on taxpayers' 2020 tax returns or their 2019 returns if the 2020 returns are not filed and processed yet.

To reach low-income households that don't typically file taxes, the agency is setting up a portal to allow them to submit their information. This will allow them to claim both the enhanced child tax credit and stimulus payments they might have missed. A similar online form existed last year to allow low-income Americans to receive the first round of stimulus checks from the March 2020 relief package.

Meanwhile, the IRS will also launch a separate portal to allow parents to update their address, bank account information and family size, as well as opt out of the monthly payments in favor of receiving the tax credit as a lump sum next year when they file their return. If a family's situation changes during the year, the IRS can adjust the payment when they file their 2021 tax return to claim the second half of the credit. Lower income taxpayers will not be required to return any overpayments, a senior administration official said.

More details about the portals will be announced in coming weeks, the official said. The administration also plans to launch an outreach campaign to inform families about the enhanced payments and the portals.

A bigger boost for one year

Under the American Rescue Plan, families can receive a credit totaling $3,600 for each child under 6 and $3,000 for each one under age 18 for 2021. This is up from the current credit of up to $2,000 per child under age 17. The enhanced portion of the credit will be available for single parents with annual incomes up to $75,000, heads of households earning $112,500 and joint filers making up to $150,000 a year.

The package also makes the tax credit fully refundable so that more low-income parents can take advantage of it. Until now, it has only been partially refundable -- leaving more than 20 million children unable to get the full credit because their families' incomes are too low.

Lawmakers also wanted to make it easier for parents to use the funds to cover their expenses during the year. So the law calls for sending families half the credit on a monthly basis, from July through December. They will then claim the other half on their 2021 tax returns.

Initially, the IRS was uncertain whether it would be able to provide the credit on a monthly basis starting in July, but Commissioner Charles Rettig told lawmakers last month that the agency is on track to meet that deadline.

The enhanced child tax credit alone is expected to cut child poverty nearly in half. In total, the Democrats' relief package is projected to reduce the share of kids in poverty by more than half, lifting more than 5 million children out of poverty this year.

Democratic lawmakers have been pushing the Biden administration to make the beefed up credit permanent, but President Joe Biden's latest proposal, the American Families Plan, would only continue the increased payments through 2025. The plan would make the credit fully refundable permanently.

The provision is projected to cost roughly $110 billion a year.

This story has been updated with additional details.

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 603760

Reported Deaths: 7605
CountyCasesDeaths
Hennepin1247651771
Ramsey52437895
Dakota46772469
Anoka42693458
Washington27391290
Stearns22545224
St. Louis18120311
Scott17536134
Wright16400148
Olmsted13386102
Sherburne1199494
Carver1065848
Clay825492
Rice8186110
Blue Earth762343
Crow Wing681194
Kandiyohi667185
Chisago619152
Otter Tail585684
Benton582798
Goodhue483373
Douglas475381
Mower470733
Winona460851
Itasca458663
Isanti439564
McLeod429161
Morrison424361
Nobles407950
Beltrami406960
Steele397416
Polk388872
Becker386555
Lyon363853
Carlton352556
Freeborn346832
Pine335023
Nicollet330945
Mille Lacs311454
Brown307840
Le Sueur297125
Todd285632
Cass285532
Meeker263042
Waseca237823
Martin234932
Roseau210721
Wabasha20783
Hubbard196041
Dodge18773
Renville182346
Redwood176338
Houston174016
Cottonwood167124
Wadena162422
Fillmore157410
Faribault154319
Chippewa153838
Pennington153820
Kanabec146828
Sibley146810
Aitkin138637
Watonwan13589
Rock128719
Jackson122612
Pipestone116626
Yellow Medicine114920
Pope11296
Murray107010
Swift106918
Koochiching94617
Stevens92411
Clearwater89016
Marshall88717
Wilkin83112
Lake82920
Lac qui Parle75622
Big Stone6044
Grant5938
Lincoln5843
Mahnomen5669
Norman5479
Kittson49022
Unassigned48093
Red Lake4017
Traverse3755
Lake of the Woods3453
Cook1720

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 370583

Reported Deaths: 6041
CountyCasesDeaths
Polk58186638
Linn21181339
Scott20287246
Black Hawk16065312
Woodbury15227230
Johnson1460585
Dubuque13496211
Dallas1128499
Pottawattamie11214173
Story1070848
Warren583591
Clinton561393
Cerro Gordo553193
Sioux516974
Webster514494
Muscatine4875106
Marshall486376
Des Moines466970
Wapello4333122
Buena Vista426140
Jasper420872
Plymouth402981
Lee381756
Marion365976
Jones300857
Henry294137
Bremer287760
Carroll286752
Boone268334
Crawford267840
Benton258755
Washington256751
Dickinson249344
Mahaska232251
Jackson225242
Clay216527
Kossuth216166
Tama211671
Delaware210943
Winneshiek197735
Page194522
Buchanan193033
Cedar192023
Hardin187344
Fayette186443
Wright185940
Hamilton181751
Harrison179973
Clayton171057
Butler165935
Madison164519
Mills163324
Floyd163042
Cherokee159338
Lyon158841
Poweshiek156936
Allamakee152652
Hancock150134
Iowa149824
Winnebago144331
Cass139255
Calhoun138913
Grundy137133
Emmet135841
Jefferson133535
Shelby131537
Sac130720
Union129935
Louisa129749
Appanoose129049
Mitchell126643
Chickasaw124517
Franklin123323
Guthrie123032
Humboldt119526
Palo Alto113623
Howard105022
Montgomery103638
Clarke100924
Keokuk96432
Monroe96230
Unassigned9540
Ida91535
Adair87332
Pocahontas85822
Davis85225
Monona82931
Osceola79016
Greene78011
Lucas77923
Worth7598
Taylor66712
Fremont6269
Decatur6159
Ringgold56324
Van Buren56318
Wayne54423
Audubon52910
Adams3444
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