The next installment of the enhanced child tax credit is coming later this month. The third payment out of six will hit the bank accounts of those registered to receive direct deposits on the fifteenth of this month. So, parents should start watching their balances next Wednesday.
The enhanced child tax credit payments are part of President Biden’s American Rescue Plan. With that plan, they made the refund per child larger. At the same time, they planned to send a monthly check to parents. Those who are eligible will get between $250 and $300 per month per child. Parents will get $300 every month for each child under six years old. They’ll get $250 per month for children between the ages of six and seventeen.
However, the enhanced child tax credit payments are not compulsory. Those who would rather get their money in one lump sum after filing their taxes can go to the IRS website and use the Update Portal to change their preferences. First, they will have to create a secure account. Then, they’ll be able to make changes to their account.
It is important to note, though, that if a couple filed taxes jointly both parties will have to sign up for accounts and make changes. Otherwise, they will get half of the amount for which they are eligible. The rest will be available after filing taxes in the spring. Additionally, those who wish to opt out of the enhanced child tax credit stipends must do so before the second of the month. As a result, it is already too late to opt out of September’s payment.
The enhanced child tax credit payments will continue until the end of the year. Payments for October, November, and December will all land on the fifteenth of the month. So, payments will come in just in time to help families with Halloween, Thanksgiving, and Christmas.
Beware of Child Tax Credit Scams
The enhanced child tax credit payments have brought the scammers out of the woodwork. An ABC News report states that scammers have several tactics to steal unsuspecting parents’ information. For instance, parents might receive official-looking emails asking them to fill out an “eligibility form.” Additionally, parents may get phone calls, text messages, or messages on social media asking for the same.
Luckily, avoiding these scams is easy. Just don’t engage. The IRS will never call, text, or email taxpayers about their child tax credit. They most assuredly won’t message taxpayers on social media.
So, those who receive these types of calls or texts should ignore them.
Additionally, some parents have received phone calls threatening arrest or lawsuits if they don’t make a payment. The IRS won’t do this. Many of these calls ask for payments in the form of gift cards, wire transfers, or cryptocurrency. The US government does not accept those payment forms for anything.