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Posted: 2021-03-08T20:22:58Z | Updated: 2021-03-09T14:32:42Z

American families would receive regular payments that would add up to as much as $3,600 per child per year from the federal government as part of the American Rescue Plan, the $1.9 trillion COVID-19 relief bill the House is set to pass on Tuesday.

The bill would send $1,400 stimulus checks to the vast majority of households. But there would be more checks after that a series of payments to parents of minor children, for the rest of the year, thanks to Democratic changes to the child tax credit.

Instead of just lowering family tax bills or providing a refund, the legislation tells the IRS to pay the benefit in advance, on a periodic basis. Households with children would start receiving the regular payments, worth hundreds of dollars, starting sometime after July 1.

Democrats started pushing the concept of a monthly payment in 2018, touting studies that showed the extra money for parents would slash child poverty. But even higher-income families will receive payments if President Joe Biden signs the bill into law.

Politically, its a good look, said Elaine Maag of the Tax Policy Center. Its definitely a broad benefit designed to reach a lot of people.

The legislation increases the maximum age for an eligible child from 16 to 17 years old, makes the credit available even to those with no earned income, and increases the value of the credit for low-to-middle-income earners.

Families with a joint income of less than $150,000 would receive $3,600 per child under the age of 6, and up to $3,000 for children between 6 and 17 years old. Two-earner households earning up to $400,000 annually would still receive periodic payments as well, according to Senate aides, totaling $2,000 per child the current value of the credit. (The IRS may have some leeway on what the advance payment program ultimately looks like.)