Welcome news for parents of the majority of America's kids: Your bank account is about to get a monthly boost. As part of the expanded tax credit under the Biden administration's American Rescue Plan, households including 88% of the nation's children will start seeing monthly payments on July 15, a move that's designed to help lift more than 5 million kids out of poverty, reports Reuters. Per Insider, 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. CNET answers more questions about the tax credit, including how it works for shared custody and how it differs from what was offered in previous years. (Read more stimulus checks stories.)