Biden to send child tax credits to 39 million families

On Thursday the Internal Revenue Service will begin delivering monthly installments of President Joe Biden's enhanced child tax credit to some 39 million American families.

The boost will see individuals who make under $75,000 and couples earning under $150,000 with children under six-years-old receive $3,600 per child, with monthly $300 checks starting to go out July 15.

The tax credits were part of the $1.9 trillion American Rescue Plan, which was passed by Congress in March with no Republican support. Republicans have argued that the child tax credit boost amounts to an expansion of the welfare state.

Biden will hold an event at the White House Thursday to mark the first payments going out.

'The president thought it was important to elevate this issue, to make sure people understand this is a benefit that will help them as we still work to recover from the pandemic and the economic downturn,' press secretary Jen Psaki said at Wednesday's briefing.

If those Americans have children between the ages of six and 17 they'll receive a $3,000 tax credit, receiving $250 a month starting Thursday.

Individuals who make below $200,000 and couples making less than $400,000 are still eligible for the $2,000 child tax credit, the amount the credits were previously capped.

Parents will get half the credit they are eligible for in 2021, and will be able to claim the rest when completing this year's federal tax return early next year.

Cash will automatically start hitting the bank accounts of families who have filed 2019 and 2020 federal taxes.

Eligible families previously reclaimed the tax credit back when filing their annual taxes.

The initiative is intended to run for a year and is intended to lift millions of children out of poverty.

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