Is this the beginning of Universal Basic Income?
Around 39 million American households are set to get their first monthly payment from the expanded $3,000 child tax credit starting on July 15. That’s according to a joint statement on Monday by the Internal Revenue Service and Department of the Treasury.
In March, President Biden signed a massive $1.9 trillion economic aid package that upped the existing $2,000 child tax credit for the 2021 tax year to $3,000 per child ages 6 to 17, and $3,600 for children under the age of 6, with new income phaseouts. Up to half of the $3,000 or $3,600 expanded child tax credit can now be paid in periodic payments in 2021 through December, while the rest of the fully refundable credit would be incorporated in filers’ 2021 tax return next year.
The IRS and Treasury said that starting on July 15, eligible families will receive up to $300 per month for each child under age 6, or $250 per month for each child ages 6 to 17. Similar to the stimulus checks sent out in 2020 and 2021, these payments will begin “without any further action required” by the taxpayer, the agencies said. The payments will continue to be sent out on the 15th day of each month, so long as it doesn’t fall on a holiday or weekend.
Taxpayers with direct-deposit information on file with the IRS will get their child tax credit payments via direct deposit. Everyone else will have payments mailed as either a paper check or a debit card.