Millions of families will soon get their third child tax credit payments, which were distributed by the IRS on Wednesday.
Millions of Americans Received Child Tax Credit
In a recently published article in CNN News, a total of $15 billion was given to about 35 million households with a total of 60 million children. The average payment was $428. Most parents will immediately get increased credits of up to $300 for each kid under the age of six, and $250 for each child aged six to seventeen. In 2021, the IRS will issue three additional monthly payments.
Now that the pandemic unemployment benefits and eviction moratorium have expired, the injections may be even more of a lifeline for suffering families. The organization disbursed more than $15 billion to the parents of about 61 million children in August.
However, low-income families that did not file 2020 or 2019 tax returns or utilize the IRS portal to claim their coronavirus stimulus checks may not get the payouts. According to the Treasury Department, such families may have as many as 2.3 million children in a published article in CNET.
Who Qualifies in the Child Tax Credit?
The full improved credit is available to heads of households earning up to $112,500 per year and joint filers earning up to $150,000 per year before it starts to phase down. For many households, the credit then reaches a ceiling of $2,000 per kid and begins to taper out for single parents earning more than $200,000 or married couples earning more than $400,000.
Because of the relief package, more low-income parents are now eligible for the child tax credit, which is now fully refundable. The Treasury Department estimates that it was only partly refundable, preventing more than 26 million children from receiving the entire credit since their families’ incomes were too low, according to a published report in USA Today.
Meanwhile, non-citizen parents may get payments for their citizen children provided they have individual taxpayer identification numbers (ITINs) and their children have Social Security numbers. This IRS website allows families to verify their eligibility.
When Will the Money Hit To Your Bank Account?
Throughout the remainder of the year, parents will get half of their credit on a monthly basis. The payments will be paid on the 15th of each month unless a weekend or holiday occurs on that day. They will be able to claim the other half when they submit their 2021 taxes next year.
Parents may use an IRS site to see whether they are eligible for advance payments. They may also utilize it to submit or amend information about their bank accounts. Those who do not get their monthly payments until later in the year will still be eligible for half of the credit in 2021. Families that want to get their payments in one single amount may do so via the IRS site.