How important is the third round of payments from the enhanced Child Tax Credit?
Millions of American families will receive the third monthly payment from the enhanced Child Tax Credit on Wednesday. The IRS is distributing and scheduling direct deposit payments giving families $250 to $300 per child.
The third advance payment of the Child Tax Credit marks the halfway point for the program. It was part of the American Rescue Plan. It also marks the first payment since enhanced pandemic-era unemployment benefits ended over the Labor Day Weekend.
Parents of approximately 60 million kids will receive direct deposit payments on Wednesday, according to officials, who said that the direct cash assistance to families was pivotal in easing financial anxiety and ensuring they had enough to eat.
When will enhanced child tax credit direct deposits happen?
The IRS says that many Americans will see the direct deposit when they wake up on Wednesday. Depending on the banking institution payments will be completed throughout the day. Last month not everyone received a direct deposit. Some recipients of the Child Tax Credit received a check in the mail due to an IRS issue.
The IRS has not noted any similar issues this time around. In fact, last month the agency said that it was prepared to handle the process effectively between September and December.
What if you didn’t get July or August child tax credit payment?
The IRS is still processing earlier payments. Some families have reported not receiving July payments. The agency has some online tools to help. But experts and agency officials agree that past hiccups should not prevent future payments from coming on-time.
What if your Child Tax Credit payment is delayed?
Delays are always possible when it comes to these payments. The IRS is understaffed and still working through processing tax refunds, audits, multiple rounds of stimulus payments, and navigate changes made to tax laws during the pandemic. In fact, the agency faces a backlog of more than 8 million tax returns from 2020.
That’s why IRS officials are encouraging people to be patient and utilize the digital portal for updating personal information. There are also some individual banking institutions that are handling these payments on a different schedule.
The IRS encourages anyone who feels like they missed a payment to check out their online portal.
What about remaining enhanced child tax credit payments?
The IRS will continue sending payments out to qualifying families through December. Below is the opt out schedule and payment dates for the remainder of 2021.
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