When does the child tax credit come this month?
The IRS will distribute a third round of child tax credit payments this week
'Wall Street' columnist Bill McGurn tells 'Fox Business Tonight' the tax credit is 'a bad precedent' for families
The IRS will distribute a third round of child tax credit payments to millions of families this week under the expanded program included in President Biden’s $1.9 trillion COVID-19 relief package.
The third round will be paid out by direct deposit or paper check beginning on Wednesday, Sept. 15. Eligible parents will receive $300 per child aged six or younger and $250 per child aged 6 to 17 years old.
The child tax credit payments will be dispersed monthly for the rest of the year. The remaining payments are scheduled for Oct. 15, Nov. 15 and Dec. 15, according to the IRS.
Parents can check the IRS’ Child Tax Credit Update Portal to see the status of their payment.
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FOX Business correspondent Hillary Vaughn breaks down the credit payments and hears from Labor Secretary Marty Walsh on 'Making Money'
The child tax credit program is slated to expire after one year. However, Biden has backed a plan to extend the program through 2025 to aid COVID-19 recovery efforts, and both the president and prominent progressives have called for it to be made permanent.
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The monthly payments comprise half of the overall tax credit detailed in the current plan. The other half will be applied as a credit on the families’ 2022 tax return, with any remaining money after taxes distributed as another payment. Families can also opt out of monthly payments and receive a larger lump sum during tax season.
Eligible parents can receive up to $3,000 per child aged 6 to 17 years old and $3,600 per child aged under 6. The amount declines gradually for higher-earning parents, beginning at $75,000 for individuals and $150,000 for married couples.
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Approximately 88% of all children living in the U.S. qualify for the payments, according to the IRS.
Fox Business’ Megan Henney and the Associated Press contributed to this report.