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IRS Explains Reasons Of Some Child Tax Credit Payments Coming Late Or Less Than Expected

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Some Americans not receiving their child tax credit installment for September were blamed on a “technical issue” by the Internal Revenue Service.

Last week, 35 million child tax credits totaling $15 billion were given, however, around 2% of qualified beneficiaries did not get their payment.

According to the IRS, the unnamed technical issue that caused the delay has finally been rectified, and the installment is on its way. Those who did not get their payment should be getting them soon via direct deposit or in the following days if they received their cheques via mail.

Those taxpayers who had of late updated their bank account or address on the IRS child tax credit update portal as well as those married couples who are joint taxpayers where a bank or address change was made by one spouse were the majority of those who did not receive the payment for September, the IRS said.

“We know people depend on receiving these payments on time and we apologize for the delay,” the IRS said.

Under the new expanded child tax credit, payment of up to $300 is to be made for every child aged 5 years or less and a maximum of $300 for children aged between 6 and 17 years. The federal government started making the payments to the eligible parents in July this year and is set to continue till December. The remaining amount of $1,500 or $1,800 can be included for a claim when filing 2021 taxes.

 

Checks forte payments are usually sent out on the 15th of every month.

Credit – forbes.com

According to the IRS, there are many reasons why the eligible receivers of the payments might receive a different amount than expected. One of the reasons is if one spouse changes their address or bank account while the other did not, resulting in the other spouse’s share going to an old address or bank account.

According to the tax department, the entire payment will still be delivered in these cases. Recently completed tax returns is also another reason for the variation in the monthly payment amounts, the IRS said.

In September however, higher than expected payments will be received by some families. Many of the families did not get their payments for July or August and they are slated to receive their first monthly installment this month which will include their entire advance payment for the year. The payment will however be distributed over a period of four months  instead of six months. that will make each of the four payments to be received bigger than expected.

Each payout for these families is up to $450 per month for each kid under the age of six, and up to $375 per month for each child aged six to seventeen.

7 Comments

7 Comments

  1. Pingback: Child Tax Credit Benefits Likely To Decrease Significantly After 2025 - Chronicle News

  2. Pingback: You Might Be Able To Get A $ 1800 Check Before Christmas- Check Here - Chronicle News

  3. Pingback: Child Tax Credit 2021 Update: December Payment Deadline For $3,600 Check As Surprise Cash - Chronicle News

  4. Angel Dobbins

    December 3, 2021 at 2:52 AM

    I haven’t gotten my daughter child tax credit not even the 1st one and so on…. I tryed calling getting help i was told they couldn’t help me I messed it up where I wasn’t able to get nothing now. My daughter has a birthday and Christmas and she isn’t going have q good one this year do to me not having the money to get what she wanted. I was told to wait till income taxs season to fill for her child tax return…. can someone please help me she will be 17 Dec.20th

  5. Pingback: Know Whether A Government Shutdown Will Affect The Child Tax Credit Payments - Chronicle News

  6. Pingback: How To Receive December Stimulus Checks Of $600 And $1,100 Being Sent Out - Chronicle News

  7. Tina green

    December 17, 2021 at 9:13 PM

    What about elderly people who are on ssi ssa ssdi there people too don’t you think of those too am sorry but that’s how I feel

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Only 28% Of Americans View Economic Conditions Of Their Country As Excellent

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The American economy has experienced much turmoil during the COVID-19 pandemic. Indeed, according to the Motley Fool, the United States of America’s economy has come a long way since the beginning of the pandemic.

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Of course, the pandemic sore the unemployment level in the year 2020 reaching a record high. In addition to this, finding work during this period has been extremely difficult. As such, the federal government issued various stimulus and COVID relief payments and credits and unemployment benefits to combat the effects of the pandemic.

The State Of U.S. Economy

Currently, the American economy is has a 7.5% inflation rate or consumer price index. This has surpassed the 40-year record high since 1982, that is, since last month. However, besides this – the unemployment rate has decreased, and it seems the United States of America is ‘getting back to work,’ and their country’s economy is starting to recover. However – a recent survey conducted by the Pew Research Center showed that 28% of participants viewed the country’s economic conditions as good or excellent.

Why Such Economic Pessimism

It seems the supper high inflation rate leads most Americans to have such a negative view of their economy. Indeed close to 90% of participants viewed food and gas prices as higher than last year, 89 and 88 82 percent respectively.

Is Inflation Always Bad?

However, some economists argue that inflation, is at times, a sign of a healthy economy and does not always have to be viewed in a negative light. This is easier said than done though, with living costs increasing – consumers can feel the pinch in their budgets.

The argument, however, is that supply and demand determine the unit price. So if there is an increased demand – and supply does not necessarily change – unit price must increase. This means consumer price index increases or inflation. So an increase in demand could show people are buying more, and this might at least be the signs of a recovering – or active economy.

When supply chain issues are fixed – inflation should decrease. Furthermore, since December last year, unemployment is the lowest it has been since the start of the pandemic. So perhaps such an opposing economic viewpoint – can be replaced, which is realistic, in this light.

 

 

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Child Tax Credit

Experts Predict Long Payment Delays From IRS This Season, Provide Few Tips To Speed Up The Process

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The IRS faces an enormous backlog due to staff shortages amidst the pandemic, it has recruited new officials, but the challenge remains tough. IRS is yet to process millions of tax returns of last season. The IRS officials are crushed under a ton of paperwork; millions of taxpayers will file their returns this year. The authorities will need to devise a compact strategy to overcome the backlog. CNBC reports that IRS had 6 million unprocessed returns by December 31, this is large numbers, and 2021’s tax returns might take some time.

Experts Predict Long Payment Delays From IRS This Season, Provide Few Tips To Speed Up The Process

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IRS Workers Are Sparse

Experts suggest various ways to slim the time lag between filing the returns and receiving the payments. CNBC reports that the IRS only had 15,000 workers to answer around 24 million customer calls during the first six months of 2021, one person for 16,000 customers. Experts suggest taxpayers avoid the paperwork to the maximum extent; filers can switch electronic modes to fast forward the documentation. Taxpayers need to use advanced features to process tax refunds and other pending payments quickly. The electronic method will ease the burden on IRS officials during data verification.

Taxpayers Should File Electronic Tax Returns

IRS quoted Erin Collins, the National Taxpayer Advocate; she said, “Paper is the IRS’s kryptonite, and the agency is buried in it. The IRS still transcribes paper returns line by line, number by number, they received around 17 million original paper returns last year, and the processing delays have run as long as 10 months.” The taxpayers need to recheck their tax returns thoroughly; the wrong information might lead to payment abortion and several lengthy delays. The officials, too, will have to go through the same twice or thrice, which makes the process more complicated.

The families who receive enhanced Child Tax Credit or Stimulus payments or both need to exercise extra caution while filing their returns; the IRS issued letters to provide data for the amount allocated. The beneficiaries for the remaining half of the Child Tax Credit payments or extra credit should give complete information in their tax returns. IRS has announced April 18 as the deadline; individuals need to complete the filing process before the date.

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2021 Tax Refunds Will Provide Additional Money To Low-Income Americans

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The federal government introduced several relief programs to assist the sufferers of the pandemic. Millions of low-income families and individuals will likely return to their old living ways as the benefits have ceased. However, the tax refunds might bring extra money to several eligible households in 2022. IRS issued half of the Child Tax Credit to the families within the income threshold. The families will receive the remaining half after filing their returns. Many parents are eligible for additional checks after having a new child or a dependent in 2021. Cnet reports that the IRS will issue the suitable amount after information verification, eligible families will automatically receive the payments and tax refunds.

2021 Tax Refunds Will Provide Additional Money To Low-Income Americans

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Families Will Receive The Remaining CTC

Families received $1,800 for each child below six and $1,500 for each between 6 and 17. Single taxpayers with annual income below $75,000 and married parents below $150,000 were eligible for the benefits. Cnet reports that the payments phase out at $220,000 and $440,000 for each. The families failing to receive the benefits last year due to incorrect data can avail themselves of the amount through their tax returns. Taxpayers can check their payment status through the online IRS portal. Last year, parents with an additional child needed to update their information to receive the credit.

Taxpayers With A Newborn In 2021 Will Receive Credit

Cnet reports that many families received overpayments due to data miscalculation; the IRS will claim back the payments or deduct the amount from the tax refunds. The parents with an income change need to update their information; the IRS will manage their repayments based on the new income. The parents with children turning 18 last year will have to repay the money to the IRS. The families with lower income in 2021 than in 2020 will also be eligible for the extra benefits.

The fate of the Child Tax Credit program is uncertain at present. The recent rejection of the Build Back Better bill shattered the hopes of millions of Americans. The CTC program offered valuable support to low-income families and allowed educational facilities for children below the poverty level. The cessation of the payments will lead to severe financial trauma.

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