The bank accounts of parents are about to get a monthly boost from the government.
As part of the expanded tax credit under the American Rescue Plan, households with children will start seeing monthly payments on July 15. Parents will receive a total of $3,000 per child ages 6 to 17, with six monthly payments of $250 and a final payment of $1,500 to come with their 2022 tax refund. Children 5 and under are eligible for a total of $3,600, which includes six monthly payments of $300 and a final payment of $1,800 with the 2022 tax refund. Parents of those over 17 may receive a partial payment as well. To qualify for those full payments, a parent can't have an adjusted gross income of more than $75,000 ($150,000 for a two-parent household),with the amount paid phasing out from there. Most parents don't have to do anything to start seeing the payments, either: The IRS and Treasury Department say about 39 million households will automatically receive the payments via direct deposit, debit cards, or checks sent to their homes. You can also opt to skip the monthly payments and get all the money back in one lump sum next tax season.