The IRS said the delayed child tax credit payments in September mainly affected those who recently changed their information with the agency.
The IRS said Friday that a “technical glitch” prevented some eligible Americans from receiving the child tax credit advance payment on Sept. 15, but the payments are expected to arrive soon.
The agency said in a statement that it estimated that less than 2% of eligible beneficiaries did not receive their payment as expected last week. He said these were mostly people who recently updated their bank account information or address on the online child tax credit update portal.
The IRS also said the problem affected payments to married and jointly filing taxpayers, but only one of the spouses made a change in bank account or address.
“These people will receive their payments as early as Friday by direct deposit or in the next few days for those who receive checks by mail,” the IRS said.
Why is my child tax credit lower this month?
One of the questions several people were asking on Google on Friday is why their child tax credit payment in September was lower. The IRS was apparently aware of this and addressed it in the same statement.
âThere are several reasons why people may see a different amount than they expected,â the IRS said. “If only one spouse changes address or bank account, half of the other spouse could go to the old address or to the old bank account. In these cases, the full payment will still be distributed.”
The agency said if a tax return was recently processed, it could also change the amount received. The credit goes to eligible Americans who filed a 2019 or 2020 tax return or to those who are not required to file but have used the online tool for non-filers.
âWe encourage people to check the IRS CTC update portal for the latest payment information,â the IRS said.
The deadline to go online and opt out of payment on October 15 is 11:59 p.m. ET on October 4.
What is the child tax credit?
The credit is $ 3,600 per year for children under 6 and $ 3,000 for children 6 to 17 years old. Eligible families who do not opt ââout will receive $ 300 per month for each child under 6 and $ 250 per older child.
Benefits begin to disappear at incomes of $ 75,000 for individuals, $ 112,500 for heads of households and $ 150,000 for married couples. Families with incomes of no more than $ 200,000 for individuals and $ 400,000 for married couples can still receive the previous credit of $ 2,000.
In the past, eligible families were granted credit after filing their taxes, either as a lump sum payment or as a credit against taxes owed. But now six months of payments are advanced monthly until the end of the year. A beneficiary receives the second half when he files his taxes.
The expanded child tax credit, which was passed as part of the US bailout’s COVID relief bill in March, is set to expire after a year, although President Joe Biden has offered to extend it until ‘in 2025 and wants it to be made permanent.
The Associated Press contributed to this report.