The average family received over $5,000 as result of the advance child tax credit payment program included in the American Rescue Plan. The payments began in July, and later this week the fourth round of checks will go out to parents and families in the U.S.
Will Congress extend the advance child tax credit payments?
The tax credit was expanded and split in half as part of the American Rescue Plan. Now though, lawmakers want to see it expanded further. In fact, a push is underway to make the recurring monthly payments to families through 2025.
“It’s helped with essentials,” Margaret DeBanter, a Toledo, Ohio resident told FingerLakes1.com. “When the kids when back to school, the $500 we received covered the back to school costs.” She wasn’t alone — the average household will receive $5,086 by the end of the year through the program.
President Joe Biden wants to see the enhanced child tax credit payment be extended as part of the Build Back Better Act. The plan would allow the payments to continue through 2024 or 2025. Opponents of expanding the measure beyond 2021 say the cost is simply too much. The child tax credit expansion is just one part of a massive $3.5 trillion human infrastructure bill.
One major roadblock remains, though: Not even all Democrats are in favor of the expansion.
Mark Smith, a Harrisburg, Pennsylvania resident who spoke with FingerLakes1.com about the credit admitted that it’s been helpful. “I have concerns though,” he recounted. “It’s helped my family — but we didn’t lose any jobs or income during the pandemic. Part of me wonders if the money could have gone elsewhere to help those more in need — or if we should’ve received it at all.”
Smith said as a taxpayer, he’s also concerned about the long-term implications. “I’m not blind to the cost of all this,” he added. “On one hand it feels necessary — especially for those struggling — but on the other, it’s expensive and eventually it could put our country in a difficult position.” Lawmakers in Washington, D.C. have been debating the debt ceiling for weeks — and while a temporary spending increase has been agreed to in principle — that will run out before 2021 ends.
When will your October child tax credit payment arrive?
The Internal Revenue Service says those payments will go out on October 15. The deadline to opt out passed earlier this month, but the IRS is also going to be seeing a wave of 2020 income tax returns on Friday. The agency, which is facing an historic backlog, could have challenges processing the upcoming payments.
Most people eligible for the $250 or $300 payments per child will get a direct deposit on Friday. Those who receive checks through the mail can expect them by early next week.
Share information about the advance #ChildTaxCredit to help eligible families who are not required to file taxes register now to get monthly payments. See #IRS resources at https://t.co/2G6i7dXm0z
*Thanks Logan for helping us spread the word!* pic.twitter.com/L95TXCQJfb
— IRSnews (@IRSnews) October 11, 2021
What about November and December child tax credit payments?
Those are on the way, too. As the IRS digs out of its current tax refund backlog — other missed payments are being processed. Everyday the IRS is moving through more of them — getting stimulus checks, child tax credit payments, and unemployment overpayment refunds back in the mail and direct deposited into bank accounts.
The deadline to opt out of November and December payments is November 1, and November 29 respectively. The latter deadline is significantly earlier due to the holiday and long weekend around Thanksgiving.