Dates for Child Tax Credit Payments as the IRS Prepares to Send Out New Payments
On Friday, the IRS will disburse another round of payments for the increased Child Tax Credit, with two more installments remaining this year.
The credit, which was approved by Congress in March as part of the America Rescue Plan, is intended to assist families in paying for basic necessities as the country’s economy recovers from the coronavirus outbreak.
Qualifying parents receive a cheque worth one-twelfth of the total payment for half of the credit given out from July to December. In April 2022, the remaining half of the credit can be claimed as a lump payment on one’s taxes.
The next payment, which will be the fourth of six monthly installments, will be made on October 15 by direct deposit and mail. November 15 and December 15 are the deadlines for the final two payments for 2021.
Households that have yet to receive one of the three monthly checks that have already been mailed may see their payment changed and increased on Friday.
According to CNET, there have been some instances of payment issues, including lost checks, wrong amounts, and outdated IRS information.
Due to a technical glitch, approximately 15% of families who received their July payment through direct deposit received paper checks the following month.
While it is too late for October, unenrolling from the remainder of the year’s checks is an option for those households to explore.
Those with complicated tax or family situations, or parents who may simply desire a larger sum next year, may wish to opt out for next month, but they must do so by November 1st.
Around 35 million households in the United States earned the tax credit in September, which was worth up to $300 per qualified kid under the age of six, for a total of $3,600.
They may also be eligible for up to $250 each qualifying child aged 6 to 17, for a total of $3,000.
The whole amount is available to single filers earning less than $75,000 per year, heads of households earning less than $112,500 per year, and married couples earning less than $150,000 per year. According to CNET, it then phases down by $50 for every $1,000 of income above those threshold amounts.
The child tax credit, according to a Columbia University study published in August. This is a condensed version of the information.