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Most of the monthly payments under the extension of the “Child Tax Credit” (CTC) that the Biden Administration is preparing to send as of July 15 will be deposited to the bank accounts of the beneficiaries, in the cases in which the person provided that information to the Internal Revenue Service (IRS).
“To make sure families have easy access to their money, the IRS will issue these payments by direct depositas long as the IRS has the correct banking information available. Otherwise, people should be on the lookout for their mailbox starting July 15 as payment will arrive in the mail. The dates for sending the Child Tax Credit advance payments are July 15, August 15, September 15, October 15, November 15 and December 15, “the IRS said in a statement last week. .
IRS will not send monthly payments on EIP Card
Contrary to the procedure for the disbursement of stimulus checks, the IRS will not send prepaid credit cards (EIP Cards) as a means of payment.
The only two means of supplying the funds will be direct deposit or paper checks by postal maill.
The IRS has not yet specified how long it will take to process payments both ways.
But in the case of electronic transfers of the third stimulus check, the agency schedules payments every Friday with official date on Wednesday of the following. The official date refers to the day on which the recipients can freely use the funds.
When it comes to paper checks, the experience with stimulus payments has been that it takes 3-4 weeks for payments to reach their destination by mail once the IRS releases them.
At least 36 million families with children in the US would receive payments between July and December unless they request cancellation of advance payments through the IRS website.
Payment will be up to $ 300 per month for each child under the age of 6 and up to $ 250 for each child from 6 to 17 years old.
Same guidelines on income level used for third stimulus check
This year, as a result of the approval of the “American Rescue Plan”, the CTC awards up to a maximum of $ 3,600 dollars per child in the household depending on their ages and the income of their parents or guardians.
The IRS will apply the same procedure for leveling down by income level that it used with the third stimulus check to determine the amount to pay per household.
Currently, the office is concentrating its efforts on reaching families who are not required to file low income taxes. The IRS tries to collect information from these people in order to process these payments. For these purposes, the entity enabled the online tool ”Non-filers Sign-Up for non-filers to enter their data and those of dependents.
Enrollment Events in 12 US Cities
Additionally, the Internal Revenue Service began orientation activities in 12 US cities to enroll more eligible households for payments.
Here you can see the calendar of national events that started this past weekend.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.