Child Tax Credit Update: In Less Than a Month You Could Get a Stimulus Check

Child Tax Credit Update: In Less Than a Month You Could Get a Stimulus Check

For nearly forty million American parents, the long, agonizing wait is about over. In just one month, on July 15, the Internal Revenue Service will begin disbursing the expanded child tax credits under President Joe Biden’s American Rescue Plan.

 

For nearly forty million American parents, the long, agonizing wait is about over.

In just one month, on July 15, the Internal Revenue Service will begin disbursing the expanded child tax credits under President Joe Biden’s American Rescue Plan.

 

Then these potentially sizeable payments are expected to be made on August 13, September 15, October 15, November 15, and December 15, according to the agency.

Know that it was Biden’s highly ambitious $1.9 trillion stimulus bill that enabled the expansion of these child tax credits, which were generally reserved for families to claim a credit of up to $2,000 for children under the age of seventeen.

Now, however, these credits have been extended to even more struggling families amid the pandemic, allowing them to collect 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. This means that a $250 or a $300 cash payment for each child will head into the pocketbooks of eligible parents every month till the end of the year.

“The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children,” Biden said in a statement.

“About 90 percent of families with children will get this new tax relief automatically, starting in July … this tax cut sends a clear message: help is here,” he added.

For those hardworking parents who are still wondering if they qualify for this new cash windfall, make sure to be on the lookout for two letters that have been mailed out by the IRS. Using the USPS’ Informed Delivery is highly encouraged for this.

The first letter—which was sent out to more than thirty-six million American families—targets those who may be eligible to receive the monthly credit payments. Then the second, more personalized letter will have the estimated amount of their monthly checks.

The tax agency has also taken the initiative to assist the nation’s lowest income earners who often don’t make enough throughout the year to have to file taxes. Therefore, a tool was “developed in partnership with Intuit and delivered through the Free File Alliance … (and will provide) a free and easy way for eligible people who don't make enough income to have an income tax return-filing obligation to provide the IRS the basic information needed.”

Do take note that there will be other portals that will be launched by July 1 to help individuals update and adjust their information and any changes to child dependents.

The agency writes: “Later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible.”

Ethen Kim Lieser is a Minneapolis-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.