US sellers are about to have a huge sales boom? Child tax credit payments are starting to roll out

Sellers are also likely to see a surge in orders in the coming months as the government's cash handouts lead to an increase in monthly payments going directly into the bank accounts of parents and carers .

According to the IRS, about 39 million families , including nearly 90% of children in the United States , will begin receiving payments in July, and the payments will continue until December. As part of the American Rescue Plan , the child tax payment is equivalent to a number of stimulus measures to encourage people to buy food, school supplies, clothes , etc.

The tax credit would increase from $2,000 to $3,000 per child for children ages 6 to 17, and to $3,600 for each child under 6. Families would receive the full amount if their income reached $150,000 as a couple or $112,500 as a family with a single parent as the head of the household ; or $75,000 as an individual taxpayer .

In families getting the full amount, that would translate into payments of $250 or $300 per child per month .

Francine Lipman, a law professor at the University of Nevada, Las Vegas , said the payments would go to two different kinds of consumers: Families living at or below the poverty line would likely spend the money on necessities, such as buying food, paying rent or paying for medication.

Families who can usually afford what they need may use the money differently. Middle- and upper-income families may put extra money toward discretionary items, such as summer camp, laptops, or new clothes for back-to-school.

Retailers including Walmart and Best Buy said they are already feeling the rush, with spending boosting sales at their stores after consumers received stimulus checks.

JPMorgan analysts said Walmart, Target, Costco, BJ's Wholesale Club and auto parts retailers are the biggest beneficiaries of the child tax credit. Horvers expects value-oriented retailers such as dollar stores to also see more sales.

Target Chief Growth Officer Christina Hennington said that the extra funds of most American families may be used for their children's back-to-school season to buy new clothes, notebooks and laptops for their children. Such products may see a surge in sales, and relevant sellers can pay special attention to them.

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