President Joe Biden (left) touted the child tax credit in a tweeted video on Monday while Vice President Kamala Harris (right) promoted it in a visit to a recreation center in Pittsburgh, Pennsylvania (Pictures: Twitter/Getty Images)
President Joe Biden has announced reformed child tax credits providing up to $300 per child monthly for families earning less than $150,000 per year. The president’s American Rescue Plan offers the largest tax credit ever to working families, according to the Biden administration.
The $1.8trillion American Rescue Plan increased the child tax credit from $2,000 to $3,000 per child six to 17 years old and from $2,000 to $3,600 per child under six years old. It also raised the age limit from 16 to 17 years old. Working families making up to $150,000 annually for a couple or $112,500 for a family with a single parent are eligible for the full credit.
Automatic payments from the child tax credit will start entering bank accounts on July 15. For a working family with two children, that amounts to $500 or more every month this year. Biden promoted the child tax credit on Twitter on Monday.
‘Folks, this Child Tax Credit is a huge step towards a tax system that works for the middle class. It will lift millions of children out of poverty,’ Biden tweeted. ‘This is just the first step. My American Families Plan will extend this benefit for years to come.’
Most families will get the automatic payments without needing to sign up, as long as they have filed their taxes. Even families who did not make enough money to need to file taxes may be eligible for the child tax credit.
Vice President Kamala Harris touted the initiative in a visit to a recreation center in Pittsburgh, Pennsylvania, on Monday.
‘When more families know about how they can get the relief, that is how we will be able to lift our children out of poverty,’ Harris said.
The credit is slated to run for a year, after which it is set to expire. Biden has proposed extending the benefit through 2025 and aims to make it permanent. The expanded tax credits could cost the US $100billion annually. There was no indication of the maximum number of children that a family could claim the benefit for.
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