For those who qualify for the Child Tax Credit, August 13 was the day set for this month’s payments to families with children.
The Child Tax Credit payments are part of the $1.9 trillion American Rescue Plan, a stimulus legislation signed into law by President Joe Biden to help the nation rebound from the coronavirus pandemic. The payments will total $3,600 per child age 6 and under, and $3,000 for kids ages 7 to 17.
The full $3,000 and $3,600 credits will be available to individual taxpayers earning less than $75,000 and married couples earning under $150,000. However, payments will be reduced for anyone earning above the aforementioned thresholds. The expanded benefits will be reduced by $50 for every additional $1,000 in income over the $75,000 and $150,000 thresholds.
Half of the total credit is being sent out monthly between July and December, with $300 per month for kids 6 and under, and $250 for the 7 and up age group. The other half will be paid when families file for their 2021 income taxes.
— Lauren Underwood (@LaurenUnderwood) August 3, 2021
First payments in July
The first payments were released on July 15, and September, October, November and December payments are also planned for the 15th of the month.
The IRS had previously set the 15th of each month, starting in July and ending in December, as the date when these new checks would go out. This month, however, the 15th falls on a Sunday. So the tax agency backed up the payment date this month to Friday, August 13.
That’s the date when direct deposits for this new child tax credit check started hitting bank accounts. If the IRS doesn’t have your bank details, however, you’ll have to wait another couple of days or so. For your check to arrive in the mail, in paper form, that is.
Second child tax credit
Some points to know about this second child tax credit check from the IRS include:
– These payments are going out to around 36 million US families.
– This new batch of payments totals about $15 billion.
– The vast majority of the payments will come in the form of a direct deposit, not as a paper check.
How much stimulus money was sent out on August 13?
Check your mailbox because for millions a new stimulus check should be arriving in the next day or so. That’s according to the latest child tax credit update from the IRS, which has shared some early details about this second round of child tax credit payments.
This is an all-new stimulus check that will provide a few hundred dollars to families with eligible children.
For more information on the August payment
Payments by mail
Some families will need to be aware of this alert the IRS included in its child tax credit update on Friday. “The IRS wants to alert some recipients who received direct deposits in July that they will receive the August payments by mail. Due to an issue expected to be resolved by the September payments, a percentage of these recipients – less than 15% – who received payments by direct deposit in July will be mailed paper checks for the August payment.”
For those affected, the September payment should revert back to a direct deposit automatically. Also, families can always visit the IRS Child Tax Credit Update Portal to see if they’re receiving a direct deposit or paper check for the current month.
According to the IRS, families who didn’t get a July payment and are getting their first monthly payment in August will still receive their full child tax credit payment for the year. That means that the total payment will span five months, rather than six, making each monthly payment larger.
Check to see If I’m eligible to receive advance Child Tax Credit payments.