September’s Child Tax Credit Saw $15 Billion in Stimulus Money Reach 35 Million Families
About 35 million American families will get child tax credit payments this month, the federal government announced on Wednesday, as the third batch of advance monthly payments is now being sent out.
See: Everything You Need to Know About September’s Child Tax Credit and Beyond
Find: The Child Tax Credit Might Have to Be Paid Back — Unless You Take These Steps
A statement by the IRS and U.S. Treasury Department said the combined payments will total around $15 billion, with the majority of payments being issued via direct deposit. The enhanced CTC payments were included in the American Rescue Plan and are typically sent around the middle of the month. Payments were previously issued on July 15 and Aug. 13. Future payments are scheduled for Oct. 15, Nov. 15 and Dec. 15.
As previously reported on GOBankingRates, the payments are designed to give families financial relief to help deal with fallout from the COVID-19 pandemic. Eligible families will receive half of their credits in the form of monthly payments from July through December, with rest paid out when they file their 2021 tax returns. The credit is based on income and starts to phase out for individuals earning more than $75,000 annually, or $150,000 for those married filing jointly.
For qualifying families, each payment is up to $300 per month for each child under age six and up to $250 per month for each child age six through 17.
See: Didn’t Get Your Child Tax Credit? Here’s How to Track It Down
Find: Stimulus Update — How Much Money Will You Get if You Sign Up Now for the Child Tax Credit?
The IRS provided these further details on the latest payments:
Families should have begun seeing the money in their accounts starting Sept. 15.
Those receiving payments by paper check in the mail should get the checks by the end of this month. If you want to get future payments by direct deposit, use the Child Tax Credit Update Portal on the IRS.gov website to make the change. To access the portal or to get a new step-by-step guide for using it, visit IRS.gov/childtaxcredit2021. Changes made by 11:59 p.m. Eastern Time on Oct. 4 will apply starting with the October payment.
Families who didn’t get a July or August payment — and are getting their first monthly payment this month — will still receive their total advance payments for the year of up to $1,800 for each child under age six and up to $1,500 for each child age six through 17. The total payment will be spread over four months instead of six, which means each monthly payment will be larger. For these families, each payment is up to $450 per month for each child under age six and up to $375 per month for each child age six through 17.
See: Stimulus Update — Democrats Officially Push for Extending $300 Monthly Child Tax Credit Payment Until 2025
Find: Are Child Tax Credit Payments Taxable?
It’s not too late for families who haven’t filed a 2020 income tax return to sign up for advance CTC payments, the IRS said. Families who are not normally required to file tax returns are urged to explore the tools available on IRS.gov, which can help them determine their eligibility and provide steps to receive payments in the future.
Families who want to opt out of the advance payments can do so by using the “unenroll” feature in the Child Tax Credit Update Portal. Eligible families who do this will still get the rest of their CTC as a lump sum when they file their 2021 federal income tax returns next year.
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This article originally appeared on GOBankingRates.com: September’s Child Tax Credit Saw $15 Billion in Stimulus Money Reach 35 Million Families
