It's been over a month since the American Relief Plan was passed, sending a third stimulus check to eligible Americans, but many are still in dire straits financially, especially families. Well for millions, more money is on the way and after President Biden's address to a joint session of Congress on Wednesday night, stimulus checks could be sent monthly for the next four years.
During the speech, Biden presented his American Families Plan, which, if it comes to fruition, would greatly expand the federal child tax credit. Thanks to his American Relief Plan, that child tax credit has already been extended for one year, during which time eligible families can receive up to $3,600 per child in stimulus checks, but with the American Families Plan, that benefit would continue through 2025. The proposal is actually a compromise as many Democrats wanted the child tax credit to be made permanent, but Biden felt the cost of that would be would be too high.
As we've reported, the federal child tax credit is open to married couples who together earn $150,000 or less and have children under the age of 18, or individual parents making $75,000 or less with children under the age of 18. For every child those moms and dads have between the ages of 6 and 17, they'll get a check for $250 every month for six months - that's $1,500. For any kid they have under the age of six, they'll get $300 monthly for six months, totaling $1,800. That's not all though, they will also get a tax credit next year - $1,500 for each kid six to 17 and $1,800 for each child under six. You can find out how much you'll get here.
If Biden's proposal becomes a law, it will include many other benefits as well, including free community college tuition, paid family leave, more access to Medicaid and much more. Of course, there has to be a way to help pay for it all and that will come from raising taxes for the wealthiest citizens, something that is going to be hard to get Republicans to agree on.
Regardless, the monthly stimulus checks and tax credits are definitely happening this year, and will begin in July. First, the IRS needs to create an online portal and hire and train a staff for it. They can't get to that until they get through the current complex tax season. Once the portal is up and running, more information about how to get the checks will be available.
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