Time to check those bank accounts. More money was scheduled to be heading to families Friday for the August payment of the advance child tax credit.
Some households report that they woke up Friday to see the money in their accounts — just like they did on July 15.
But others hit social media Friday morning in shock and wondering: What happened? Where’s my money? Where’s that extra $250 or $300 for each child for August?
For some, it could seem that the IRS’s Friday drop date is looking like the release date for Kanye West’s upcoming “Donda” album, which is facing more delays in August. You just never know when this one is hitting for some families. Maybe the money will get there before the album.
Troubled taxpayers on social media Friday couldn’t understand why they were looking at a longer wait than expected to receive their cash.
“Got last month’s DD no problem,” one said. “This month’s says it will be mailed. Ugh.”
After checking IRS.gov website to review their status, some taxpayers learned that their advance child tax credit would be mailed this time — even though they received the advance child tax credit via direct deposit last month.
One said: “Nothing here yet. I use NetSpend,” which is a prepaid debit card.
If you’re in this situation, you’ll need to check IRS.gov to see your status. You also can go to the IRS site for a special page of information on the has Advance Child Tax Credit at IRS.gov/childtaxcredit2021 for possible updates.
What was that timeline?
The six monthly rounds of advance payments are set to arrive around the 15th of the month this year. The first July advance payment hit July 15. The next payments are scheduled for Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
The second child tax credit monthly advance payment for August was scheduled for Aug. 13. That’s because Aug.15 is a Sunday. The way direct deposit usually works, you’re getting a “pending” notice in your account before the money shows up.
Some families said told me they did not see pending notices for direct deposit on Thursday, as expected, and they were concerned what was next.
We might be looking at a mixed message. For some, things will work out the same as last month. But others who got their money via direct deposit in July now could need to check their mailboxes for this second round of monthly payments for August — if they’re not seeing the money via direct deposit.
Nothing is really simple, is it?
The Internal Revenue Service didn’t give a response Thursday when asked why some people weren’t seeing those pending notices.
The IRS noted in July that about 86% of the payments for July were sent by direct deposit. So we could be talking about many people who are expecting direct deposit Friday for a second advance child tax credit payment.
The first batch of advance monthly payments were worth roughly $15 billion and were sent to about 35 million families across the country.
Money pays down debt, buys food
The advance child tax credit is an influx of cash just in time for back-to-school purchases and other expenses.
Many families used the money they received in July to pay off debt, and buy groceries, clothing and to pay for child care, according to the latest U.S. Census household pulse survey.
For some families, we’re talking about money that’s as big as a monthly car payment — or more.
Millions of eligible families are receiving up to $300 per month from July through December for each qualifying child ages 5 and younger and $250 per month for children ages 6 to 17.
A family with three toddlers could be looking at a monthly payment of up to $900.
The child tax credit was expanded as part of pandemic-related relief. The IRS will pay half the total credit amount — up to $3,600 for each child for those with young children — in advance monthly payments over the six months. The other half is to be claimed on the 2021 income tax return.
If your child ages out of the credit in 2021, the IRS is expected to make some adjustments on its own. The IRS won’t include a child who turns 18 in 2021 in your advance monthly payments. And the IRS is expected to adjust the payment to $250 instead of $300 a month for a child who turns 6 this year.
The monthly advance payments are a new program that was authorized by the American Rescue Plan Act, enacted in March. Right now, the monthly payouts are happening this year only, but President Joe Biden and other Democrats want to try to extend this relief into future years.
Many families don’t need to do anything to get this money. The IRS is basing monthly payments on the most recently processed tax return, either the 2019 federal return or the 2020 return.
The new maximum credit is available to taxpayers with a modified adjusted gross income of $75,000 or less for singles; $112,500 or less for heads of household; and $150,000 or less for married couples filing a joint return and qualified widows and widowers.