Missing child tax credit payments in September: some parents have yet to receive the funds

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Angry parents reached out to CNN, took to Twitter and posted to other online sites to complain about not receiving the money on September 15 as expected. Eligible families can get up to $ 300 for each child up to age 6 and up to $ 250 for each age 6 to 17.

The agency, which distributed $ 15 billion in credits to about 35 million families last week, admitted on Friday that “some people” had not yet received their September payments, although they did. July and August. He also noted that these parents might not be able to see the payment status on the IRS Child Tax Credit portal.

The August cast, however, did not go so smoothly. The agency said last month that some families – less than 15% – who received direct deposit in July received paper checks for August. But he expected the issue to be resolved in time for the September batch.

The IRS, which admitted Friday that it was reviewing the situation, did not immediately provide CNN with an update on Tuesday.

John Belfiore, father of two teenagers, gets angry. He lost his job as a telemarketer for a finance company in February after contracting Covid-19 and spending eight days on a ventilator. Monthly child tax credit payments of $ 500, as well as unemployment benefits in the event of a pandemic, were helping to keep her family of four afloat.

But now that the improved unemployment benefits have ended, the child tax credit has become even more important to the Lake Forest, California family. They received the funds for July and August by direct deposit, but the IRS portal doesn’t say anything about the September payment.

“I’m counting penny on penny,” said Belfiore, who tried to call the agency but hung up after waiting for an hour. “The $ 500 gives me money for gasoline to go to service and keep the lights on.”

Here are more details on the expanded child tax credit:

Who qualifies?

Created by Democrats’ $ 1.9 trillion coronavirus relief program in March, full enhanced credit is available to heads of households earning up to $ 112,500 per year and joint filers reaching $ 150,000, after which it begins to disappear.

For many families, the credit then tops out at $ 2,000 per child and begins to wane for single parents earning over $ 200,000 or for married couples with incomes over $ 400,000.

More low-income parents are eligible for the child tax credit because the relief made it fully refundable. It had only been partially repayable – leaving more than 26 million children unable to get full credit because their families’ incomes were too low, according to Treasury Department estimates.

About half of black and Latino children, as well as children living in rural communities, received only partial or no credit because their families’ incomes were too low before the improvement, the Center said. left wing on the budget and politics. Priorities.

The provision means that a single mother with a toddler and a sophomore earning $ 12,000 a year would see her credit increase to $ 6,600 for 2021, from about $ 1,425, according to the center.

The Democrats’ $ 3.5 trillion budget reconciliation bill aims to make the credit permanently fully repayable.
RELATED: New Child Tax Credit Payments to Be Made. Here’s how the IRS tries to make sure the families most in need don’t miss out

Parents who are not citizens can receive payments for their citizen children as long as they have an Individual Tax Identification Number (ITIN) and their children have a Social Security number.

Families can check their eligibility through this IRS website.

How much will I get?

It depends on your household income and the size of your family.

Eligible families can receive up to $ 3,600 for each child under age 6 and up to $ 3,000 for each age 6 to 17 for 2021. This is an increase over the credit for Regular child tax of up to $ 2,000 for each child up to age 17.

RELATED: How Much Will Your Child Tax Credit Be? Use this calculator

When will I see the money?

Parents will receive half of their credit on a monthly basis until the end of the year. Payments will be made on the 15th of each month, unless it falls on a weekend or a holiday.

They can claim the other half when they file their 2021 taxes next year.

Parents can check if they are registered to receive advance payments on an IRS portal. They can also use it to provide or update their bank account information.

Those who don’t get their monthly payments until later in the year will still get half the credit in 2021.

Families who wish to receive the payments as a lump sum can opt out of the monthly payments on the IRS portal.

Some parents may not want to collect the monthly payments, especially if their income increases this year. Payments are family tax credits for 2021, but are based on 2020 or 2019 income and household size. Some who get the early loans could end up receiving much lower repayments – or even owing taxes – next spring when they file their 2021 returns.

The IRS advises parents whose income or circumstances change during the year to update their information through the agency’s portal when it adds the feature. The IRS can then adjust the monthly payments accordingly.

Lawmakers, however, have protected low-income parents from possible overpayments. Heads of households earning $ 50,000 or less and joint filers with income of $ 60,000 or less will not need to repay overpayments.

Do I have to do something to get it?

The vast majority of families get the credit automatically because they filed 2019 or 2020 returns claiming the credit.

The IRS also sends payments to Americans who previously used its non-filer portal to register for dunning checks.
RELATED: August Child Tax Credit Payments Reach About 61 Million Children
But families who haven’t filed taxes recently or haven’t used the no-report tool need to take action. They can use another IRS portal to enroll and receive the enhanced child tax credit. The registration tool allows users to provide the necessary information about their households and, if desired, their bank accounts so that the agency can directly deposit the funds.
Parents can also go to GetCTC.org to file simplified returns and apply for enhanced credit. The site, which launched earlier this month, was developed by the nonprofit Code for America, in conjunction with the White House and the Department of the Treasury. It is available in English and Spanish.

The IRS portal has been criticized because the tool is only in English and does not work well on cell phones.


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