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IRS Announces Arrival of New Payments this October for Eligible American Families, Here’s What You Should Know

Child Tax Credit
Numerous parents will receive their fourth advance child tax credit payment two weeks from now. (Photo: Unsplash)

The Internal Revenue Service (IRS) is halfway finished with the dissemination of Child Tax Credit Payments for 2021. The third series of payments were distributed on September 15. Such funds were not sent out without difficulties. The fourth Child Tax Credit Payments are slated to be distributed on October 15 for bank accounts.

Child Tax Credit

Numerous parents will receive their fourth advance child tax credit payment two weeks from now. (Photo: Marca)

Numerous parents will receive the fourth advance child tax credit payment. Almost 35 million households were provided the last payout. Such payments amount to family stimulus checks. It began in July for families to pocket additional money in their bank account to help buy pay household bills, cover groceries, or pay down debt.

Effects of Child Tax Credit

The credit is $3,600 yearly for children under 6 years old and $3,000 for children from 6 to 17 years old. Qualified families will be granted $250 per older child and $300 monthly for each child under 6 years old. It was included in the American Rescue Plan passed in March. The first series of payments were disseminated in July and August.

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Do You Want to Opt-Out?

However, a number of people who claim a child or multiple children as dependents would prefer to opt-out of their final few advance payments. Such individuals have mere days left to opt-out of receiving child tax credit payments.

Arrival of Child Tax Credit Payments

The American Rescue Plan expanded the child tax credit, permitting for the first half of the tax credit to be transferred directly to families. Every month until December, the payments are arriving. An estimated $15 billion dollars worth of payments were distributed in September. Although October 15 is the deadline for those receiving the funds through direct deposit, individuals receiving the payments with a paper check through the mail will need to wait until the distribution of the US Postal Service, reported ABC 13 News.

Senator Joe Manchin’s Concerns

Budget reconciliation deals among Democrats have reached a stalemate over Senator Joe Manchin’s concerns regarding extending the Child Tax Credit (CTC) without a work prerequisite. Manchin thinks any new family spending should have “needs-based means testing” as he indicated in his discussion with Majority Leader Chuck Schumer, reported Niskanen Center.

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