Stimulus Update: Americans Will See More Stimulus Money in Their Bank Accounts Tomorrow
by Christy Bieber | Published on Oct. 14, 2021
Waiting for more stimulus money? It could be coming tomorrow.
This week, some Americans eager for more stimulus money will get their wish. Payments will be deposited into bank accounts on Oct. 15, 2021 for one of the key types of financial assistance made available by the American Rescue Plan Act.
Are you one of the millions of Americans who is going to get more money? Here's what you need to know.
Here's who will receive a check on Oct. 15
The payments that are being delivered on Oct. 15 are going to eligible parents and will come as a result of the expansion of the Child Tax Credit authorized by the American Rescue Plan Act.
Prior to the March 2021 coronavirus relief legislation, a Child Tax Credit of up to $2,000 per eligible child was available to qualifying parents. However, only $1,400 of the Child Tax Credit was refundable. This has resulted in many parents not receiving the full amount because their tax liability wasn't $2,000 or more. Parents also got their Child Tax Credit only upon filing taxes, which meant they got a once-yearly bonus but not ongoing assistance as they needed it.
The American Rescue Plan Act changed all that in 2021. The Child Tax Credit was expanded to $3,600 per child under age six and $3,000 for children ages six to 17. The credit is fully refundable too, so those who need help the most because they don't have high incomes are entitled to the full amount. And, perhaps most importantly, the Biden administration arranged to have the credit deposited into people's bank accounts throughout the year.
The IRS is handling these deposits, which began in July of 2021 and will continue through the end of the year. Parents should have already received three payments into their bank accounts over the past several months and the next one should be arriving on Oct. 15.
Now, this money will be deposited only if you are eligible based on income and family status and only if you didn't opt out of receiving the advanced payments. If you already received three Child Tax Credit deposits, then you should expect a fourth on Oct. 15.
If the IRS does not have your bank information on file, though, the payments will be sent via mail and will take longer to arrive. And if you haven't received the money at all but are entitled to it, you will be able to get it by filing a 2021 tax return in 2022.
Parents who are currently receiving this stimulus money can expect the payments to keep coming through the next few months. But while some lawmakers are trying to make the expanded Child Tax Credit permanent, it is currently slated to expire at the end of this year. That means that the next few payments could be your last unless a deal is struck in Washington, D.C. to extend this stimulus relief for more time.
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