Many federal financial transitions and adjustments have arisen to accompany the onslaught of the COVID-19 pandemic. Now, American families have begun to receive a monthly child tax credit payment, amounting to a maximum of $300. The payment per child soon sees its third month’s distribution. As families across the country wait on the federal payments, we have everything you need to know about September’s distribution.
July saw the first child tax credit hit parents’ bank accounts. Since the distribution of the funds, many families have depended on the extra bit of income. The payments are used either to provide for their families or indulge in things they may not afford regularly. September marks the federal payment’s third deposit for families, and payments may either come by direct deposit or by check.
According to The Sun, families should receive their child tax credit in the next few days.
Eligible families should receive a sum of $300.00 per child under the age of six. Those parents with children aged six through 17 should receive payments of $250.00 per child.
Parents of of-age children, however, will also see deposits to their accounts. Although, those payments come with certain stipulations. For families who have children aged 18, parents may claim a one-off $500 stimulus check. Additionally, families’ dependents are also eligible for tax payments. Dependents must age between 19 and 24. Payments of $500 are available to those individuals, however, they must be enrolled in higher education full-time.
Additionally, the outlet stated those parents enrolled for monthly child tax credits should receive up to $1,800 when tax returns come next year.
America’s Child Tax Credit Sees Eventual Termination
While families and individuals alike work to pull themselves out the financial strains induced by the coronavirus pandemic, we’re here to remind Outsiders that the monthly deposits are not a permanent fix. Initially, the federal government began distributing both child tax credit payments and stimulus checks alike as a way to stimulate spending and rejuvenate the country’s economy.
However, following this month’s payment, 2021 child tax credits conclude for the year on December 15th. The Sun further stated that, upon initiating the monthly payments, President Biden approved an increase from $2,000 to $3,600 earlier in the year. However, this adjustment remains temporary.
Further, Biden did state that he remains open to the idea of extending the child tax credit program until 2025. The pending decision may be a result of continued efforts to boost the U.S. economy following the impact of COVID-19.
Families should also know that, with the $3,600 cap, that number would reduce back to $2,000 during an election year.
And while American families can utilize the child tax credits as they see fit, some Americans across the country previously decided to opt-out of the monthly payments. As a result, those families would continue to receive the child tax credit as a lump sum on their annual tax return.
Regardless, as earlier payments were previously delayed, hopefully, the September deposits come a lot more quickly and efficiently than federal checks have come in the past.