New stimulus checks that millions of Americans received in less than a month will include six new stimulus payments starting July through December of this year. These new stimulus checks are part of the expanded federal child tax credit that President Joe Biden signed into law in March as part of his $1.9 trillion stimulus legislation.
Therefore, if you have eligible children and if you have filed your federal tax return at least by the May 17 deadline this year, you will start receiving the first of the six new stimulus checks. With the IRS relying on the information given to them on file for you, your payment will be distributed automatically.
First round of Child Tax Credits won't be through debit cards
Per BGR, you just have to provide either your banking details for an electronic direct deposit or your address for a paper check that arrives in the mail. Afrterwards, you don't have to do anything at all but to wait. Nearly 39 million families are expected to receive these new payments, which includes 88 percent of the children in the US.
To be eligible for the stimulus payments, married couples should earn $150,000 in total or less; and individuals should make not more than $75,000. Every eligible child, between 6 and 17 years old, will receive $250 from July to December. Every child under the age of 6 receives $300 or $1,800 in total. When family's taxes are filed, the remainder of the child tax credit they are entitled to will come next year.
This week the IRS stated that it has designed an online Non-filer Sign-up tool for low-income families who do not usually file tax returns so that the eligible families may register for monthly child tax credit payments. The Tax Agency has been developed with Intuit in partnership with the Free File Alliance.
The agency also said this tool provides eligible individuals with a free and easy way to provide the basic IRS information, such as names, addresses, and social security number - with an income tax return filing obligation to figure out and issue their child's tax credit advance payments. According to CNBC, parents should be aware that the IRS will not send the first rounds of payments through debit cards, a Treasury spokesperson said.
The earliest payments set to begin on July 15 will be sent to households by paper check or direct deposit. The spokesperson added that the agency plans to distribute some of the monthly stimulus checks on a debit card. However, the lack of a debit card option might spark problems for those who don't have direct deposits or can't easily or freely cash a check.
Low-income families could receive stimulus checks from Child Tax Credit
The Treasury Department and IRS announced on Monday an online tool to make sure low-income families can get the payments for the monthly Child Tax Credits, as per CBS News. The new portal is said to help people who have not received their payments even if they are qualified for the stimulus checks, officials said.
The 2021 Child Tax Credit was also expanded to include low-income families who earn too little to pay taxes. Those families will be allowed to be in the system for filing tax returns so long as they provide the necessary details to the IRS.
Those who have children born before 2021 and who have not filed an income tax return for 2019 or 2020 may use the tool. It includes those who did not use the IRS non-filers tool to register for stimulus checks last year. The tool enables people to provide required information and their qualifying children aged 17 or younger, as well as bank details for direct deposits.
When someone uses the web portal to give their information, the IRS determines their eligibility automatically and makes monthly payments based on that information. To get stimulus payments, they will not have to do anything else. The IRS stated that majority of the payments will be through direct deposits while other payments could be sent via mail as a check.