(CBS Detroit) — The Internal Revenue Service (IRS) sent out the third round advance Child Tax Credit payments on September 15. What time the …
(CBS Detroit) — The Internal Revenue Service (IRS) sent out the third round advance Child Tax Credit payments on September 15. What time the check arrives depends on the payment method and individual banks. Many parents with direct deposit set up had already received the money in their accounts Wednesday morning. The remainder of families receiving their credits via direct deposit — accounting for roughly 60 million children — should have their money by the end of the day. Mailed checks could take up to a week, given the vagaries of the U.S. postal system. Future payments will continue to happen monthly through the end of the year, thanks to the American Rescue Plan passed back in March. Democratic lawmakers are looking to extend that end date to at least 2025. Families can use the Child Tax Credit money as they see fit. That means the extra $250 or $300 per child can be put toward essentials like food or rent. U.S. Census numbers collected in its Household Pulse Survey showed a sharp drop in food insufficiency and less difficulty with household expenses soon after the first payment arrived July. Almost half of recipients spent at least some of the money on food, and almost a fifth of parents with young children spent money on childcare. The credit may also be used to buy a new computer, which is a necessary tool for remote learning. Other households may apply the money toward piano lessons, car repairs, or even diapers. Regardless, knowing that the extra income will be there every month allows for a measure of security and flexibility in a world that’s full of surprises. The IRS is paying $3,600 total per child to parents of children up to five years of age. That drops to $3,000 for each child ages six through 17. Half of the total is being paid as six monthly payments and half as a 2021 tax credit. So parents of a child under six receive $300 per month, and parents of a child six or over receive $250 per month. The IRS has made a one-time payment of $500 for a dependent age 18 or full-time college student up through age 24. The updated Child Tax Credit is based on parents’ modified adjusted gross income (AGI), as reflected on their 2020 tax filing.
