- The IRS began shipping the third batch of checks to millions of beneficiaries of the Child Tax Credit.
- According to the agency, they issued “this third batch of monthly advance payments, totaling about $ 15 billion.”
- Child Tax Credit payments may reach qualified families through direct deposits or a physical check.
The Internal Revenue Service (IRS) began shipping the third batch of checks to millions of beneficiaries of the Child Tax Credit (CTC).
This Wednesday, September 15, the IRS and the Treasury Department announced that from today millions of families in USA could see the September advance payment of the Child Tax Credit reflected in their bank accounts.
IRS issues third batch of Child Tax Credit checks
According to the IRS, they issued “this third batch of monthly advance payments, totaling about $ 15 billion” dollars that will be reaching about “35 million families in all the country”.
Starting today, parents who are beneficiaries of the program will be able to see the positive balance in their accounts, since many of the payments will be made through direct deposit. “Like the previous payments, the vast majority of families will receive them through direct deposit,” confirmed the agency.
Direct deposit or physical check?
Child Tax Credit payments may reach qualified families through direct deposits, which you can verify in your bank account immediately, or through a physical check, which would arrive in a few days via postal mail.
In the latter case, the IRS asks beneficiaries for a little patience. “For those who receive payments by check, be sure to allow additional time, until the end of September, for delivery by mail,” they point out.
I prefer to receive direct deposit
If you are one of those who must wait for your check to arrive in the mailbox and now you prefer to change your payment method to direct deposit, you can do so. “Those who wish to receive future payments by direct deposit can make this change through the Child Tax Credit Update Portal“.
Of course, the agency makes it clear that people have a deadline to do so. “A change made before 11:59 pm ET October 4 will be applied to the October payment ”, they explain and recommend visiting the Child Tax Credit Prepayments in 2021 for more details to allow you to make the modification smoothly.
Who will receive this third check?
According to the IRS, “the new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of $ 75,000 or less for singles, $ 112,500 or less for heads of household and $ 150,000 or less for married couples that file a joint return and for qualified widows and widowers ”.
But what if a person earns more than that? If you earn more than this amount, you can also receive the aid, although to a lesser extent. “Above these income thresholds, the additional amount above the original credit of $ 2,000, whether it is $ 1,000 or $ 1,600 per child, is reduced by $ 50 for each additional $ 1,000 in modified AGI,” explained the IRS.
More checks to come
There are still checks to be delivered. Under the American Rescue Plan, qualifying families will receive six payments from July through December “of up to $ 300 per month for each child under age 6 and up to $ 250 per month for each child ages 6 to 17.”
So far, the IRS has sent the first three checks on July 15, August 13, and now September 15. According to its schedule, three more checks would be pending and will reach the beneficiaries on October 15, November 15 and December 15.
Money on the way
The IRS indicated that “the payments went to eligible families who filed a 2019 or 2020 tax return” and that for this third check they had also issued the payments for the processed returns until August 30.
Even people who don’t normally file a tax return, but used the tool in 2020 Non-Filers or in 2021 they used the tool Non-filer Sign-up they will be receiving their advance payment of the Child Tax Credit this September.
How to claim my check?
The IRS has specified that payments are issued automatically to all families who qualify for assistance based on the information they have provided the agency on their 2019 or 2020 tax returns, so they do not need to do anything to receive your check.
However, people who do not usually file taxes and who are not registered in the IRS database should use the tool Non-filer Sign-up to claim help.
IRS catches up on late payments
The IRS also clarified that in this third round they will be catching up with some late payments. “Families that did not receive a July or August payment and receive their first monthly payment in September will still receive their full advance payment for the year up to $ 1,800 for each child under the age of 6 and up to $ 1,500 for each child from 6 to 17 ″.
“This means that the total payment will be spread over four months, instead of six, which will increase each monthly payment. For these families, each payment is up to $ 450 per month for each child under 6 years of age and up to $ 375 per month for each child from 6 to 17 years old ”, they specified. IRS issues third batch of Child Tax Credit checks.