Today’s third Child Tax Credit payment is in your bank account

The third monthly payment for the enhanced Child Tax Credit landed on Wednesday. This payment provides cash to millions of families during a period when many other important stimulus programs have expired.

Parents of about 60 million children will receive direct deposit payments on September 15, while some may receive the checks through the mail anywhere from a few days to a week later. Parents of eligible children under 6 will receive $300 per child, while those with children between 6 to 17 will receive $250 per child on Wednesday.

The September 15 payment marks the halfway point of the direct cash assistance, with only three monthly payments remaining under the plan signed into law by President Joe Biden through the American Rescue Plan. But some Democratic lawmakers are currently working on an extension of the enhanced Child Tax Credit (CTC) through 2025, although that’s far from guaranteed. Anti-poverty activists claim that the CTC helped families to weather the continuing effects of the pandemic.

” The bills are due every month, so the checks should also,” Natalie Foster, cochair of the Economic Security Project (a non-profit that promotes guaranteed income), said. We know the first two checks had a significant impact on families. “

For instance, the share of households with children that sometimes or often didn’t have enough to eat dropped to 8.4% from 11% after the first check arrived, according to an analysis of Census data by the Senate Joint Economic Committee. Food and educational expenses ranked among the top uses of the checks, with 7 in 10 families putting the funds toward goods, services or paying down debt, the JEC report found.

More than 400 economists — including Nobel laureate Peter Diamond of MIT and renowned inequality experts Gabriel Zucman and Emmanuel Saez of the University of California Berkeley — sent a letter to lawmakers on Wednesday urging Congress to make the enhanced CTC a permanent feature of the tax code. A permanently extended CTC would provide tremendous benefits to children and families, and it would not reduce employment,” they wrote.

Meanwhile, the Delta variant is causing a resurgence in COVID-19 cases, hampering job growth in August as some businesses hesitated to hire and millions of workers sat on the sidelines amid growing fears about infection. But federal pandemic unemployment benefits ended on Labor Day for 9.1 million people, which means families struggling with joblessness may be more reliant on the CTC to make ends meet.

Here are the details about the third Child Tax Credit.

When does the Child Tax Credit arrive in September?

The third payment date is Wednesday, September 15, with the IRS sending most of the checks via direct deposit. IRS relies on information from people’s bank accounts through tax returns and its non-filer tool. This is for people who do not normally file taxes returns. The “CHILDCTC” label will appear on the bank deposit. “

The remaining three payments will arrive on the 15th of October, November and December.

Can I opt out of the September payment?

Some people may want to opt out of the monthly cash payments, such as if they would rather get a bigger tax refund in 2022 or if one parent in a divorced couple isn’t claiming the child as a dependent in 2021.

Unfortunately, it’s too late to un-enroll from the September payment, as the IRS deadline to opt out was on August 30. However, families can still opt out for the final three checks by un-enrolling via the Child Tax Credit Update Portal by these dates:

  • October 4 for the October 15 payment
  • November 1 for the November 15 payment
  • November 29 for the December 15 payment

Will the CTC extend beyond 2021?

Under the House Democrat budget reconciliation bill released on Friday, the CTC would be extended through 2025 — but not all lawmakers are convinced the CTC should move forward under its current form.

Senator Joe Manchin, a conservative-leaning Democrat from West Virginia, suggested on CNN on Sunday that the CTC should include more requirements and restrictions, such as a work requirement for families. There are no requirements for work. He said that there are no requirements for higher skill sets and education. Do you not think that if the goal is to aid the children, then the citizens should put in some effort?” “

Work is a popular requirement for lawmakers to make sure federal beneficiaries aren’t encouraged to sit idle. But research indicates that most families would continue to work if the tax credit was extended, according to the left-leaning Center on Budget and Policy Priorities.

The 400 economists who are urging a permanent expansion of the enhanced CTC also said it is unlikely to impact parents’ incentives to work, pointing to research that found Alaska’s permanent fund dividend — an annual cash dividend that is provided to all state residents — had no impact on employment rates. The letter stated that recent empirical studies show the income from the program will not significantly reduce the supply of parental labor.

How can I enroll a child born in 2021?

Because the CTC is a tax credit for the 2021 tax year, children born in the current calendar year qualify for the payments. But families with children born in 2021 need to take an extra step to make sure they get the checks this year.

That’s because the IRS is relying on 2019 or 2020 tax returns to determine eligibility — which means the agency won’t be aware of a child born in 2021 unless parents update their information with the IRS as soon as possible.

But the Child Tax Credit Update Portal (CTC UP) still doesn’t have the functionality to add a child born in 2021, although the IRS says that will be available starting in “late summer.” Family members with children who are new should make sure to check the site again in the coming weeks.

Can I update my bank account?

Yes, the IRS Child Tax Credit Update Portal (CTC UP) allows people to update their bank account information.

I’m a parent, but have not received a payment. Is there something wrong?

There could be a number of reasons why, ranging from eligibility to lack of information on the IRS’ part.

This could happen to parents with joint custody. The IRS said it will send the CTC checks to the parent who claimed the child as a dependent in 2020. That can be an issue if the other parent plans on claiming the child as a dependent in 2021, since a parent who received the payments may need to pay back the IRS in 2022.

Parents who know they won’t claim the child on their 2021 tax return should unenroll from the CTC payments if they want to avoid having to repay the tax credit, according to the IRS. The other parent, meanwhile, will get the full CTC when they file their taxes in 2022, the IRS said.

Some people might have been overlooked, like people who don’t normally file taxes. The IRS partially relies upon tax returns for eligibility determination and to send checks.

People can provide their information to the IRS through its Non-filer tool or through a new site that debuted this month called GetCTC.org, which was created by the White House and Code for America. The checks were delivered “pretty effortlessly for millions of families,” Foster, Economic Security Project. There is more to do to ensure that every family has it. “

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