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This article was updated on September 15, 2021
Last updated on September 15 at 3:30 p.m. EST.
More government stimulus is on the way. This week, millions of American households will receive the first of several checks for as much as $300 per child under their roof. As we reported back in May, President Biden bolstered the annual Child Tax Credit allowance — from a ceiling of $2,000 per child under 17 to $3,600 per child 6 and under and $3,000 for every child between 6-17 — and restructured the timeline for payments.
Rather than deliver lump-sump payments at year’s end, Biden’s American Rescue Plan calls for partial advance stimulus to be delivered in monthly increments of $250-$300 per child, beginning two days from now on July 15. Subsequent payments will arrive on the 15th of each ensuing month (provided it doesn’t fall on a national holiday) until the end of the year, at which point the difference will be apportioned.
The idea is that parents will have received roughly half of their total owed credit before the holidays arrive, rather than struggle to make ends meet for their kids over these next several months, particularly as folks rebound from the ravages of the pandemic.
Most payments will be meted out via direct deposit, with paper checks also being mailed. The key is making sure your most recent tax filings have been properly submitted to and processed by the IRS. So make sure you visit their FAQ on eligibility thresholds and other prerequisites ASAP if you haven’t already, and start readying that back-to-school shopping list.
Update: On September 15, President Biden announced that “another round of payments from our expanded Child Tax Credit is heading to working families across the country,” adding that eligible families should “be on the lookout for a $250 to $300 payment labeled ‘CHILDCTC’ in your bank account.” Consider it one last bit of summer stimulus as we round the corner into a second pandemic autumn.