(U.S) – A plan is in the works that could earn families an additional $300 per month per child in 2021.
According to reports, Democratic lawmakers are formulating a plan that could expand the child tax credit. This would issue recurring payments to adults with children every month. The payments would be funded as part of President Joe Biden’s $1.9 trillion relief package.
With the proposed draft of the plan the Internal Revenue Service would deposit $300 checks monthly per every child under 6-years-old and $250 every month per child from 6-years-old to 17-years-old.
Total payments would be $3,600 for the younger children and $3,000 for children six and up. Reports note there may also be an option for families to receive the full year’s worth of tax credit when filing instead of the monthly payments.
The current child tax credit is not refundable per the tax law, but officials note the monthly payments could change that. The current proposal is only for 2021, but reports indicate there is talk of an attempt to make the program permanent.
Families would receive the funds in a similar manner as the recent stimulus payments, through checks and potential direct deposit. As the proposed draft stands now, it also appears there may be a cutoff per income.