NASHVILLE, Tenn. (WKRN) – The monthly Child Tax Credit payment under the Biden administration’s American Rescue Plan started Thursday. The U.S. Department of the Treasury and the Internal Revenue Service confirmed the funds have been deposited into the bank accounts of families across the country.
Officials said $15 billion were paid to families that include nearly 60 million eligible children in this first monthly payment, which provides some extra cash for parents through the end of the year.
Eligible families received a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17. The IRS said direct deposits will be made into the bank account currently on file with the agency. Only those who are not enrolled for direct deposit will get a physical check.
According to the IRS, there were 1.26 million qualified children in Tennessee for this month’s disbursement, which totaled $321,591,000. The average payment amount in the state was $428.
“For the first time in our nation’s history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor’s visits, school supplies, and groceries,” stated Secretary Janet L. Yellen in a press release. “This major middle-class tax relief and step in reducing child poverty is a remarkable economic victory for America – and also a moral one.”
The Child Tax Credit was expanded for 2021, where the amount increased from $2,000 per child in 2020 to $3,600 for each child under 6-years-old. A child aged 6 to 17-years-old is now eligible to receive $3,000. The IRS will send out half the 2021 Child Tax Credit this year in monthly payments to get the extra help to families sooner.