LESS than a week after the second tranche of Child Tax Credit aid started being sent to tens of millions of eligible American families, many are still waiting and may need to check the mail due to a “technical issue.”
Around 15 per cent of the checks cut by the US Department of Treasury and the Internal Revenue Service (IRS) were mistakenly sent by mail instead of direct deposit.
“Due to a technical issue expected to be resolved by the September payments, a small percentage of recipients – less than 15 percent – who received payments by direct deposit in July will be mailed paper checks for the August payment,” the two agencies confirmed in an Aug. 13 statement.
The admitted snafu affects those American families who qualify for the checks, whether they’re paper or electronic, that can range from as high as $300 per month for every child five and under and $250 per month for every child six to 17.
The IRS suggests that the “vast majority” of its CTC support checks are coming in the form of direct deposits that show up in bank accounts.
But the agency noted that many of these crucial checks “arrive in mailboxes.”
While the swath of those unpaid families is holding out for their aid, both agencies confirmed that more than $15billion worth of CTC support has reached families.
The second mid-month infusion has also benefited “roughly 61 million eligible children” which is 1.6 million more children than when the first batch of checks were sent in July.
The CTC is a portion of the $1.9trillion package that President Joe Biden secured and Congress passed in March.
Read our stimulus checks live blog for the latest updates on Covid-19 relief…
Much of the qualifications to be able to collect CTC involves filing the parent or guardian’s most recent tax return.
If you didn’t file taxes or not required to if you don’t earn enough the IRS offers its nonfiler portal.
Those who missed the May 17 deadline, especially lower-income households, are able to submit information and be able to collect their respective payments.
Critical to qualifying is income levels.
Single parents or parents filing taxes as single qualify for the full checks if they make $75,000 or less.
For those earning more than $75,000, the monthly CTC check drops by $50 for every $1,000 over the cap.
The funds eventually phase out completely.
As for married couples who file taxes jointly and earn up to $150,000 a year – they can qualify for the full payments but those payments also eventually phase out.
If a family isn’t interested in the mid-monthly payments, they can opt and select a lump sum of up to $3,600 when filing your 2021 tax return.
The next deadline to opt-out for the September payment is Aug. 30. <<>>
The extra support by the federal government is an economic shot in the arm to strained Americans who struggled when the economy hit the skids following the arrival of Covid-19.
The first CTC payment started back on July 15, and they are expected to continue through December.
The IRS has been tweaking its messaging.
Much of the reason is that beyond the 15 per cent stall due to the paper check deposit error, so many families are failing to take advantage of the cash.
In fact, 4 million American families reportedly either failed to apply or actually didn’t collect the funds they’re owed, despite being eligible.
The Center on Budget and Policy Priorities (CBPP) found that $13billion of federal stimulus aid has gone unclaimed.
The research and policy institute found that a result of this failure to apply or deliver payment information to the IRS results in “4 million or more children in low-income families risk missing out on monthly Child Tax Credit payments this year.”
