by Christy Bieber | May 18, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
The IRS will soon deposit more money into the bank accounts of eligible parents.
With the Centers for Disease Control and Prevention lifting the nationwide mask mandate, the United States has taken a major step forward towards returning to normal post-pandemic life. This latest development has made the chances of a fourth stimulus check even less likely, as it indicates the focus now is on reopening and moving forward rather than offering more government aid.
However, while you almost assuredly won't be getting a fourth stimulus payment any time soon unless things drastically change, that doesn't mean there's no more money coming.
In fact, for eligible parents who are slated to receive the expanded Child Tax Credit authorized by the recent coronavirus stimulus bill, additional financial help from D.C. will be on the way very soon. That's because the IRS announced on Monday that the first payments will arrive on July 15, 2021.
Revealed today: Access our expert's top cash-back credit card pick that could earn you upwards of $1,300, all with no annual fee.
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
The American Rescue Plan Act made major changes to the Child Tax Credit. This credit used to be worth just $2,000 per child and only $1,400 of it was refundable (which meant people who didn't pay at least $2,000 in taxes might not get the full amount).
Under the coronavirus stimulus bill, the credit was raised to $3,600 for children under six and $3,000 per child for children ages six to 17. The credit was also made fully refundable. And the American Rescue Plan Act called on the IRS to deliver the money directly into people's bank accounts (or to send it via check) on a monthly basis.
This additional stimulus money is expected to be delivered to 39 million households and will cover 88% of children in the U.S., or approximately 65 million children. While not all families are eligible for the expanded credit due to income limits, the vast majority of parents will be getting this additional stimulus money -- and soon.
Once parents receive their first $250 or $300 per child payment on July 15, they will also get a steady stream of cash. The IRS is going to deposit these same payments into people's accounts every month after the initial July payment.
The extra Child Tax Credit was expanded only for the 2021 tax year, though, so these payments may not continue indefinitely. However, Democrats are pushing hard to make the larger credit permanent and to continue the monthly distribution of funds in order to offer additional help to working families.
The IRS indicates that most families will not need to take any further action to get this money. It will be distributed using the same means as the first three coronavirus stimulus checks. However, if the IRS doesn't have bank account information or contact details for eligible families, the agency will be working with partner groups in outreach efforts to ensure everyone who is entitled to the money gets it.
Parents have faced a major burden during COVID-19, as many childcare facilities closed or they were forced to cut back on hours at work to help with remote schooling. This additional $250 or $300 per month that starts coming this summer could potentially help many who were struggling to begin the process of getting back on their feet and moving forward towards a post-pandemic future.
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent's full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.