Here's What You Need To Know: In what has been already tabbed as another round of coronavirus “stimulus” checks, millions of financially struggling parents stand to benefit from the expanded child tax credits under President Joe Biden’s American Rescue Plan.

In what has been already tabbed as another round of coronavirus “stimulus” checks, millions of financially struggling parents stand to benefit from the expanded child tax credits under President Joe Biden’s American Rescue Plan.

These potentially sizeable payments are slated to begin hitting the bank accounts of eligible parents starting on July 15. But before that date, the Internal Revenue Service has confirmed that more than thirty six million American families should be receiving letters telling them that they may be eligible to receive the monthly credit payments. Then a second, personalized letter will be sent out stating an estimated amount of their payments.

Keep in mind that the newly advanceable child tax credit was authorized by Biden’s $1.9 trillion stimulus bill, which enables eligible families to be able to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen.

This all means that for a family headed by a married couple earning less than $150,000, or an individual making under $75,000, they can now net a $250 or $300 payment each month through the end of the year. In addition, eighteen-year-olds and full-time college students who are aged twenty-four and under can give their parents a one-time $500 payment.

According to the IRS, “later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible.”

The agency added that the portal can be used to opt out of the monthly payments altogether if a taxpayer chooses to do so. Be aware that those foregoing the checks will potentially be in line to receive a one-time lump sum during next tax season. “Eligible taxpayers who do not want to receive advance payment of the 2021 Child Tax Credit will have the opportunity to decline receiving advance payments,” the IRS stated.

Do take note that another part of Biden’s legislation is targeting parents and guardians who pay out of pocket for child care services—as these individuals can now collect those related expenses in the form of tax credits of $8,000 for one child and up to $16,000 for two or more children.

The IRS is recommending that parents should start preparing immediately if they want to claim those tax credits. Just make sure to keep all receipts, forms, or documents outlining what was paid to babysitters, nannies, daycare centers, and camps. Then when tax season arrives next year, fill out Form 2441 and attach it to the completed tax return.

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

This piece first appeared earlier this month and is being reprinted due to reader interest.

Image: Reuters.