Last month, parents received the first payment from the expanded Child Tax Credit that was authorized by the most recent coronavirus stimulus bill. The coronavirus relief legislation, which was called the American Rescue Plan Act, provided for eligible parents to receive either $3,600 (for children under 6) or $3,000 (for children ages 6 to 17).
These expanded Child Tax Credit payments were in addition to the $1,400 stimulus checks, and they are meant to help parents cope with childcare expenses which the pandemic may have affected.
The stimulus money made available by the expanded Child Tax Credit is being deposited into people’s bank accounts at a rate of $250 or $300 per month. The deposits will be made in July, August, September, October, November and December. In total, half the amount of the credit will be sent in these monthly deposits and parents can claim the rest of the stimulus money they are owed on their tax return next year.
The first payment was delivered on July 15, 2021, but parents can expect to see the August payment a little sooner.
One email a day could help you save thousands
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time.
Please read our Privacy Statement and Terms & Conditions.
Here’s when the next stimulus payment will be delivered to parents
In August, the $250 or $300 expanded Child Tax Credit payment will actually be delivered on the 13th of the month instead of on the 15th of the month as parents may be expecting. The reason the payment will be sent earlier is a simple one: Aug. 15 falls on a Sunday so the IRS will be sending out the payments on the business day before that date.
August’s payment is the only one that would normally fall on a weekend, so after this month, parents will need to wait until the 15th in September, October, November, and December for their money to be sent.
Parents do have the option to opt out of receiving these monthly payments if they would prefer not to get their credit during the year. However, there is a deadline for stopping payment and it has passed for August. That means that parents who the IRS believes are eligible for the money based on their 2019 or 2020 tax returns are definitely on track to receive a payment in the coming days.
If parents wish to stop further payments from being made to their bank account, they can visit the portal on the IRS website to do so. They must take action by Sept. 30 if they don’t want to receive the next payment after this month. And the deadlines for stopping subsequent payments are:
- Oct. 4, 2021 for the payment that will be distributed on Oct. 15
- Nov. 1, 2021 for the payment scheduled for Nov. 15
- Nov. 29, 2021 for the payment scheduled for Dec. 15
As millions of Americans wait and hope for Congress to authorize a fourth stimulus check for everyone, struggling parents may be happy and relieved to see their next payment comes just a couple days earlier this month so they can use the money sooner to help cover their costs.
View more information: https://www.fool.com/the-ascent/personal-finance/articles/stimulus-update-next-payment-for-parents-to-come-earlier-in-august/