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Expanded monthly child tax credits will start going out to 39 million U.S. families starting July 15, the Treasury Department announced Monday.

Qualified families will receive a payment of up to $300 per month for each child under 6 and up to $250 per month for children between the ages of 6 and 17. This means annual benefits for parents could reach upwards of $3,000 per kid depending on their age.

The child tax credit was previously capped at $2,000 and only paid out to families with income tax obligations after they filed with the IRS.

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The payments for millions of American families are part of President Joe Biden's $1.9 trillion coronavirus relief package, which he signed in mid-March and will go into effect this summer.

The plan, in part, extended the child tax credit for one year in the midst of the coronavirus pandemic. It also made it possible for the Treasury Department to pre-pay the benefits to families on a monthly basis.

© Provided by Daily Mail Joe Biden's Treasury Department announced Monday it will start sending monthly child tax credits to 39 million families on July 15 © Provided by Daily Mail Stand

'The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children,' the White House wrote in a statement on the news Monday. 'With today's announcement, about 90% of families with children will get this new tax relief automatically, starting in July.'

More than 65 million children nationwide – nearly 88 per cent of Americans under 17 – are set to receive the benefits without their parents needing to take any additional action.

This year, couples earning $150,000 or less can receive the full payments on the 15th of each month, in most cases by direct deposit, but some by paper check or debit cards. The highest benefits total $3,600 annually for children under 6 and $3,000 for those who are older.

The benefits diminish for individuals whose adjusted gross income is more than $75,000 or couples earning more than $150,000 – and the highest-income parents will receive none at all.

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© Provided by Daily Mail Under the $1.9 trillion American Rescue Plan, Biden expanded child tax benefits for another year in the midst of the pandemic. Couples earning less than $150,000 can earn each month up to $300 per child 6 and under and $250 per child 6-17

The IRS will determine eligibility based on the 2019 and 2020 tax years, but people will also be able to update their status through an online portal. The administration is also setting up another online portal for non-filers who might be eligible for the child tax credit.

The president has proposed an extension of the increased child tax credit through 2025 as part of his $1.8 trillion families plan. Outside analysts estimate that the payments could essentially halve child poverty.

The expanded credits could cost roughly $100 billion a year.

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The White House pressed in its Monday statement for Congress to continue working toward passing Biden's costly American Families Plan, which is essentially a massive expansion of the welfare system and social programs.

'While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come,' the statement reads. 'For working families with children, this tax cut sends a clear message: help is here.'

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