American families to get sent new ‘stimulus checks’ automatically this month
AMERICAN families will see new automatic checks hit their accounts in August.
Child Tax Credit payments of up to $300 per month began to hit bank accounts in July, and another check is scheduled to go out on August 13.
The credit, expanded under the Biden administration, means most families with children in the United States can expect the checks for the rest of 2021.
The expanded amount gives $3,600 per child for children under six, and $3,000 per child for kids aged six to 17.
Previously, the Child Tax Credit was capped at $2,000 for most families.
The administration expanded the payments in an attempt to stimulate the economy amid the ongoing pandemic.
As the highly contagious Delta variant rages and is causing soaring Covid-19 infection rates in the US, the money will likely be a welcome stimulus to millions of Americans.
The payments will be made in $300 or $250 installments for eligible American families on the 15th of every month for the rest of the year.
August is an exception. This month, the money will hit bank accounts on the 13th instead.
To qualify for the full expanded Child Tax Credit, couples need to make less than $150,000 and single parents who file as head of household need to make under $112,500.
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The overall payment will be reduced by $50 for every extra $1,000 in the family's adjusted gross income (AGI) for people making above those income levels.
Parents who qualify for the tax credit can expect to get their cash automatically if they filed a 2019 or 2020 tax return.
Families have also been given the option to opt-out of the monthly payments and claim the entire amount on their 2021 taxes.
The news comes as some experts say demand for a fourth stimulus check for all Americans, not just parents, may rise as the Delta variant rages and could impact the economy.
More Covid-19 restrictions could be on the horizon that could hurt the economy and lead to more jobless claims as the number of coronavirus cases has jumped in many parts of the US.