October payments arrived in bank accounts last week
Some Americans hungry for more stimulus money got their wish last week: Payments were deposited into bank accounts on October 15 for one of the main types of financial aid made available by the American Rescue Plan Act.
Are you one of the millions of Americans who will make more money? Here’s what you need to know.
Who received a check on October 15?
Payments made on Oct. 15 went to eligible parents and will stem from the expansion of the child tax credit allowed by the American Rescue Plan Act.
Prior to the coronavirus relief legislation of March 2021, a child tax credit of up to $ 2,000 per eligible child was available to eligible parents. However, only $ 1,400 of the child tax credit was refundable. As a result, many parents did not receive the full amount because their tax liability was not $ 2,000 or more. Parents also only got their child tax credit when filing income tax, which meant they got a bonus once a year, but not ongoing help as they needed it.
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The American Rescue Plan Act changed all that in 2021. The child tax credit was extended to $ 3,600 per child under six and $ 3,000 for children ages 6 to 17. The credit is also fully refundable, so those who need the help the most because they don’t have a high income are entitled to the full amount. And, perhaps most importantly, the Biden administration arranged for credit to be deposited into people’s bank accounts throughout the year.
The IRS manages these filings, which began in July 2021 and will continue until the end of the year. Parents should have already received three payments into their bank account by this month.
From now on, this money will only be deposited if you are eligible based on your income and family situation and only if you have not opted out of receiving the advance payments. If you’ve already received three child tax credit deposits, you should expect a fourth on October 15.
If the IRS does not have your banking information on file, payments will be sent by mail and take longer to arrive. And if you haven’t received the money at all but are entitled to it, you can get it by filing a 2021 tax return in 2022.
Parents who are currently receiving this stimulus money can expect the payments to continue over the next several months. But while some lawmakers are trying to make the expanded child tax credit permanent, it is currently set to expire at the end of this year. That means the next payments could be your last unless an agreement is reached in Washington, DC to extend that stimulus relief for more time.
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