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A Monthly Allowance for Kids, From IRS

BobKamman
Level 14

Senior Democrats on Monday will unveil legislation to provide $3,000 per child to tens of millions of American families, aiming to make a major dent in child poverty as part of President Biden’s $1.9 trillion economic relief package.

The 22-page bill to dramatically expand direct cash benefits to American families was obtained by The Washington Post ahead of its release.

Under the proposal, the Internal Revenue Service would provide $3,600 over the course of the year per child under the age of 6, as well as $3,000 per child of ages 6 to 17. The size of the benefit would diminish for Americans earning more than $75,000 per year, as well as for couples jointly earning more than $150,000 per year. The payments would be sent monthly beginning in July, a delay intended to give the IRS time to prepare for the massive new initiative.

The IRS would base eligibility for the payments on families’ prior year income, which is also similar to how it sent out stimulus payments last year. The legislation would create an online portal, managed by the Treasury Department, for families to update their incomes if their annual incomes decline and they became eligible for the payment as a result.

The IRS would begin sending out payments July 1 in a similar fashion to how it sent out the stimulus payments, directly depositing the payments in taxpayers’ bank accounts.

https://www.washingtonpost.com/us-policy/2021/02/07/child-benefit-democrats-biden/