Speaking at the White House on Thursday, President Biden explained how families would receive child tax credit payments that will start to be distributed today, saying, “This can be life-changing for so many families.”
JOE BIDEN: Beginning this morning, nearly all working families-- that is, people making under $150,000 as families or an individual making under $120,000-- 25,000-- who have children, are raising children in America, are gonna receive their first monthly-- first monthly tax cut payment. That payment-- that payment from the expanded child tax credit is to be signed into law as part of my-- our American Rescue Plan. It's one of the largest ever single tax cuts for families with children.
And it's a reflection of our belief that the people of this country who need a tax cut aren't the folks at the top. They've got plenty of tax cuts. They're doing just fine. But it's the people in the middle, the folks who are struggling, who are just looking for a little bit of-- my dad would say-- a little bit of breathing room, a little bit of breathing room.
This has the potential to reduce child poverty in the same way that the Social Security reduced poverty for the elderly. And by the way, you think of monthly payments-- you get a Social Security check. Those who you know get social security, they get it monthly. Well, this will be-- unless you want it in one lump sum-- this will be a monthly payment for child care-- excuse me, for your children-- a tax cut.
And here's how the tax credit works. For every child under the age of six, a parent will get $3,600 a year. For every child six to 17, they'll get $3,000 per year. For example, a middle-class family with two young children could expect to receive $7,200 a year to help raise their children.
They'll get the first half of this $3,600 starting today, today, today. And it'll be paid out at $600 a month between now, July, and December. And then they'll get the rest of the payment next spring, around tax day.
Now, if you file taxes electronically, you can go to your bank account today-- today-- and you'll see a payment that says child CTC. Let me say that again-- payments of $300 for each child under the age of six, $250 for each child between the age of six and 17, on a monthly basis between now-- between July and December.
If you don't file your taxes electronically as you did last year, you can expect to receive a check in the mail beginning today or a few days from now. And you'll get this payment on the 15th of every month for the rest of this year.
And if you're not required to file taxes at all-- in the past, you haven't filed because you didn't owe any taxes-- then you can go to childtaxcredit.gov. Let me say it again-- childtaxcredit.gov. And they'll give you clear information and a link to help you sign up for the first time. This can be life-changing for so many families.