Stimulus Update: IRS Sending Out More Money This Week

Will you be getting a payment from the IRS in your bank account?

Millions of Americans are waiting and hoping for a fourth stimulus check as the Delta variant of COVID-19 rages and as Americans experience high inflation, falling income, and reduced spending.

With lawmakers working instead on other legislation, the likelihood of a fourth check is slim. However, some Americans will be getting more stimulus money deposited into their bank accounts this week. Here's why.

Eligible parents to see a deposit on Wednesday, Sept. 15

On Wednesday, Sept. 15, millions of parents will get more government stimulus funds delivered to them. This upcoming influx of money was authorized by the American Rescue Plan Act, which is the law President Joe Biden signed in March of 2021 that also provided $1,400 stimulus checks for eligible adults and dependents.

The stimulus payments being deposited in parents' accounts this week come from an expansion of the Child Tax Credit. This Child Tax Credit used to be worth up to $2,000 per child, $1,400 of which was refundable. And it used to be claimed when parents filed their taxes. But for 2021, it's now worth $3,600 per child under age 6 and $3,000 per child ages 6-17. The entire amount is now refundable, and part of the money is being distributed on a monthly basis.

The Sept. 15 payment being delivered this week will be the third influx of funds that eligible parents have received. The first payments were made in July, and they will continue through December 2021. The expanded Child Tax Credit will be distributed at a rate of $300 per month per child under age 6 and $250 per month for children ages 6-17 through the end of this year. This will result in parents getting half of the total payment for each child up front, and the rest can be claimed on their taxes.

That means if you are eligible for the full credit and you have one child, you can expect to have either $250 or $300 deposited this Wednesday. And you'll have additional funds deposited for each additional child.

However, if your income is above a certain threshold, your payment may be smaller or you may not get any money. If your adjusted gross income was less than $75,000 as a single filer in 2020 or $150,000 as a married joint filer, you should receive the full amount. If your income is above $95,000 as a single filer or $170,000 as a married joint filer, you will not receive anything. And if your income is in between these thresholds, you may receive a partial payment.

You can determine how much your Sept. 15 payment is likely to be by checking your bank statement to see how much the June and July payments were worth. You should receive the same amount this month. If you did not provide the IRS with your bank details, you should have received a check sent by mail instead, and can expect another to be sent this week.