The third round of coronavirus pandemic expanded child tax credit payments are set to be sent out this week as Democrats announced a plan to continue them through 2025.
The expanded child tax credit gives parents an extra $250 to $300 each month for each child ages 6 to 17. The payments, part of the American Rescue Plan signed by President Joe Biden in March, were touted to help families with mounting childcare costs along with other related issues during the pandemic. Parents with higher incomes receive less based on a sliding scale.
The payments are scheduled to go out on the 15th for each month and will continue until the end of the year for eligible families. Most will receive their payments through direct deposit but a few will receive paper checks in the mail from the Internal Revenue Service.
Some families, though, have opted out of receiving the payments early and can claim the credits when they file their taxes.
House Democrats presented new legislation that would extend the expanded credits not only until 2025 but make the credit fully refundable. The move would allow families with little or zero income to qualify for the payments.
“We seek to help families better afford essentials with the continuation of the expanded Child Tax Credit and investments that will lower the cost of prescriptions and health insurance premiums,” House Ways and Means Chair Richard Neal, D-Mass., said in a statement Friday.
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