The next advance Child Tax Credit payment goes out next Monday, with direct deposits arriving almost immediately and mailed checks taking a little longer.
(CBS Baltimore) — The fifth Child Tax Credit payment from the Internal Revenue Service (IRS) will be sent this coming Monday. But many parents want to know when exactly the money will be deposited in their bank account. Last month’s checks started arriving the morning of October 15 for those with direct deposit, or soon after for those who received it through the mail. This month’s payment will got out on Monday, November 15. Advance payments will continue next month, thanks to the American Rescue Plan passed back in March of 2021. While another stimulus check seems unlikely at this point, Democratic lawmakers are looking to extend the advance Child Tax Credit through 2025. Families can use the Child Tax Credit money however they like. That means the extra $250 or $300 per child can be put toward essentials like food or rent. It may also be spent on school supplies or a new computer, should COVID push students back into remote learning. Other households may apply the money toward piano lessons, daycare or even diapers. Regardless, the money comes at a time when much of the other pandemic aid — most recently the extra unemployment insurance — has ended. Knowing that additional income is coming 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 each month through December parents of a younger child are receiving $300, and parents of an older child are receiving $250. The IRS has also made a one-time payment of $500 for dependents age 18 or full-time college students 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. (AGI is the sum of one’s wages, interest, dividends, alimony, retirement distributions and other sources of income minus certain deductions, such as student loan interest, alimony payments and retirement contributions.
