Just days away, the IRS will do something that it has never done in the post-coronavirus stimulus era. Starting July 15, the tax agency will initiate a temporary series of direct stimulus payments, recurring monthly.
We have all the details in this latest update to our stimulus check.
Millions of eligible children will be receiving $250 or $300 checks each month from millions of families. In recent days, the IRS provided an update on all of this.
Latest Info on Stimulus Update
Let’s start with a brief overview of the key points.
Six monthly checks will be sent starting on July 15 and ending on December 15. According to an IRS count, these payments are available to at least 36 million Americans.
We should also add that these payments are not equivalent to a fourth stimulus package, even though this is how they are structured.
These are actually advance payments equal to half of a tax credit. Congress passed March’s $1.9 trillion stimulus legislation, which included expanding the federal child credit.
Families with children younger than six years old can now receive up to $3600 per child. The amount for children aged 6-17 years is $3,000 per child.
The tax credit will provide half of this amount to families next year. We are still experiencing hardships due to the coronavirus virus pandemic.
Instead of making families wait, half the amount is now being distributed — although it will be spread over six checks.
You can find out more details on Stimulus Update here.
In the meantime, the IRS offers a portal that you will want to visit.
The new stimulus checks will be sent by the tax agency to your file. The new stimulus checks will be sent to your bank as a direct deposit or your home address as a paper cheque.
If direct deposit is preferred, the Child Credit Update Portal allows families to update their bank information easily.
Families will receive their July 15 payment according to the tax agency’s details in its file.
Any updates to your stimulus payment details made through that portal before August 2 will be applied to start with the August 13 payment and continue to all subsequent payments.
CHILD TAX CREDIT TO BE RELEASE THIS MONTH
For each child aged 6-12 years, the Treasury Department will send $300 monthly payments to parents and $250 to children 6-17 years old.
Half of the credit will be paid to families monthly. The other half will go to their 2021 tax returns.
The August 13th payment is the second. To receive the second payment and monthly payments until December, you must update your bank account information by August 2.
The expansion of the Child Tax Credit has been approved for 2021. However, President Joe Biden, and other lawmakers, have expressed an interest in making this program permanent.
First and second payments status
Get My Payment no longer lists the first and second Economic Impact Payments.
View or create an online account to find out the amount of these payments. For the first payment, you can refer to Notice 1444 and for the second, notice 1444-B. These notices were sent by the IRS to your address.
Are you not eligible for the Second and First Payments? Claim the 2020 Recovery Rebate Credit.
You may be eligible for the 2020 Recovery Credit if you don’t receive a first or second Economic Impact Payment or received less than the total amount. In this case, you will need to file a 2020 tax return even though you aren’t required.
The 2020 Recovery Rebate Credit will not be calculated using the third Economic Impact Payment.