The third monthly payment of the expanded Child Tax Credit will be deposited into accounts this week, providing a financial boost to millions of families at a time when most other major stimulus programs for U.S. households have ended.
Parents of approximately 60 million children will receive direct deposit payments on Sept. 15, with some receiving checks in the mail a few days to a week later.
On Wednesday, parents with qualifying children under the age of 6 will get $300 per child, while those with children from 6 to 17 will receive $250 per child.
The payment marks the halfway point of the direct financial aid program, with only three monthly payments remaining under the plan signed into law by President Joe Biden under the American Rescue Plan.
However, some Democratic lawmakers are currently negotiating an extension of the expanded CTC through 2025, though this is far from certain. Meanwhile, anti-poverty campaigners believe the CTC has helped families cope with the pandemic's continued effects.
When will the Child Tax Credit be available in September?
The third payment date is Sept. 15, with the IRS delivering the majority of cheques via direct deposit. The IRS is relying on bank account information provided by individuals via their tax forms or through its Non-filer service, which is intended at persons who do not regularly file tax returns. The check will be designated "CHILDCTC."
The remaining three installments will be made on Oct. 15, Nov. 15, and Dec. 15.
Can I opt out of the September payment?
Some people may wish to opt out of the monthly cash payments, for example, if they would prefer to receive a larger tax refund in 2022 or if one parent in a divorced couple is not claiming the child as a dependent in 2021.
Unfortunately, it is too late to opt out of the September payment because the IRS deadline was August 30. Families can still opt out of the remaining three payments by unenrolling through the Child Tax Credit Update Portal.
Can I enroll a child born in 2021?
The CTC Update Portal still lacks the ability to add a child born in 2021, despite the IRS's promise that it will be available in "late summer." Families with new children should check back in a few weeks to see whether it has been added.