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Child Tax Credit Surprise: You’re Not Getting Paid on the 15th

Child Tax Credit

Recent reports are indicating that there are many American parents who wrongly believe that this month’s payments from the expanded child tax credits will arrive on August 15.

But do not fret, these direct payments are indeed coming—just two days earlier this time. This is due to the fifteenth falling on the weekend. As for the other future payments, they will be disbursed on September 15, October 15, November 15, and December 15.

These child tax credits—seen in some circles as unofficial fourth stimulus checks—began rolling out last month and roughly 90 percent of all children in the United States experienced direct benefits from the cash.

Approved under President Joe Biden’s $1.9 trillion American Rescue Plan, the federal government is now allowing eligible parents to net 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—meaning that a $250 or a $300 payment for each child will be deposited each month through the end of the year.

Although most families don’t need to take any action ahead of receiving the payments, some have indicated that they will opt out to avoid a costly tax bill next year. These parents may also be in line to land a one-time lump sum as well.

Glitches in Initial Batch

However, the child tax credit rollout hasn’t been immune to glitches. The Internal Revenue Service and the Treasury Department have admitted that some “mixed-status” families—those with one parent being a U.S. citizen and the other being an immigrant—have yet to see last month’s tax credits in their bank accounts.

In response, the IRS confirmed that the nonpayment was indeed a mistake and that it is working hard to rectify the matter quickly.

As outlined in Biden’s stimulus bill, parents who file their federal taxes with either a valid Social Security number or an IRS Individual Taxpayer Identification Number (ITIN) and whose children have Social Security numbers are eligible to receive the credits.

IRS Lacks Required Information

Other eligible parents who have not received their checks might not have the required information on file—such as an address and routing and bank account numbers—at the tax agency, according to a recent report released by the Center on Budget and Policy Priorities. Due to this, estimates indicate that approximately four million children from low-income families are at risk of not receiving any credits.

The IRS for months has stated that the fastest way for Americans to get their hands on the credits or stimulus checks is to file a federal tax return. But in an effort to make the process even easier, the agency already has launched a Non-filer Sign-up Tool for the public to use, so that the funds can be disbursed promptly.

Ethen Kim Lieser is a Washington state-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.

Written By

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV.

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