The Internal Revenue Service and the Treasury Department on Friday confirmed that the second batch of advance monthly payments from the expanded child tax credits was issued to approximately thirty-six million American families.
Approved under President Joe Biden’s American Rescue Plan, the expanded credits allow 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. That means a $250 or a $300 payment for each child will be paid out on a monthly basis through the end of 2021.
For millions of hardworking parents out there, the disbursement of the newest payment was indeed welcome news. However, there were still reports of some eligible parents who have yet to see the money land in their bank accounts.
According to the IRS, concerned individuals have the option to utilize the Child Tax Credit Update Portal to see their monthly payment history. If the payments are indeed pending, then that information should be present on that page. Also, if the payment was said to be already delivered, then make sure to double-check that the home address and banking information, such as the account and routing numbers, are free of mistakes.
Do take note that the same portal can be used to change how one would like to be paid, such as from paper checks to direct deposit. It offers other handy options, too, such as opting out of receiving the monthly payments so that they could potentially be eligible for a one-time lump sum during tax season next year.
For those people who haven’t filed their federal tax returns yet, know that the Non-filer Sign-up Tool should definitely be the go-to stop to give the IRS the required information so that it can promptly issue the funds.
Bank Account Active?
Keep in mind that there could be other reasons why one has yet to receive their child tax credit payment. First, it is entirely possible that the IRS tried to direct deposit the cash into a closed or inactive bank account.
If the tax agency indeed attempted this, then the deposit will likely be rejected—which would initiate the mailing out of a paper check via the post office to the home address on record. This process could take a couple of weeks in some instances.
Moreover, be aware that babies born this year will indeed make parents eligible for the credits if an extra step is taken. On the aforementioned Child Tax Credit Update Portal, parents are able to report any newborn throughout the year, and by doing this, the payment should automatically be sent out.
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.