Millions of families will start to receive monthly payments from the IRS on Thursday, following the enactment of President Biden’s coronavirus relief law that included an expansion of the child tax credit.
The $1.9 trillion relief measure from March increases the credit amount for 2021 and directs the IRS to make periodic advance payments of the credit through the end of the year so that families receive funds in installments rather than in a lump sum when they file their tax returns in 2022.
Democrats say the expanded tax credit will help to substantially reduce child poverty, and the monthly payments will help families cover important expenses as they occur. Many Democratic lawmakers want to pass legislation later this year to make the one-year expansion of the credit permanent. Continue reading.