- Millions of immigrants are at risk of losing monthly advance payments for the Child Tax Credit.
- More than 35 million payments worth $ 15 billion have already been deposited nationwide.
- Those affected are less likely than other demographic groups to file their taxes each year.
A new study shows that millions of immigrant families are at risk of losing monthly advance payments for the Child Tax Credit, aid that was part of President Joe Biden’s latest stimulus package.
Since mid-July, more than 35 million payments worth $ 15 billion have already been deposited into bank accounts or mailboxes nationwide. Those who qualify will receive $ 300 per child each month through December 2021.
Millions of immigrants could lose child tax credit
However, the study by the Center for Budget and Policy Priorities shows that about 4 million or more children and families are at risk of missing out on their monthly IRS Child Tax Credit payments.
According to the study, released by The Ascent company, lower-income households and households with immigrant parents and children with social security numbers are the groups that are mainly at risk.
Many parents from low-income households do not report
This is because parents in both types of households are less likely than other demographics to file taxes each year. Many parents from low-income households do not file, as do many immigrant parents, which means they are not required to file their tax returns each year.
The Internal Revenue Service (IRS) is the federal agency that determines who qualifies based on the information included on your 2019 or 2020 tax returns. Once households are determined eligible, payments are issued automatically.
The situation worries experts
This means that anyone who may qualify for the monthly payments but did not file taxes in 2019 or 2020 will not have their information on file with the IRS. Therefore, the IRS cannot determine if they are eligible and your household is at risk of missing out on this help.
The situation worries experts as low-income families not only have a greater need for a financial boost, but according to the researchers, low-income and immigrant-led households were also more likely to have missed the last three stimulus payments.
There are ways to fix the problem
Fortunately, there are ways to fix the problem. For those in this situation, the IRS has tools to help get your monthly advance payments back on track.
If you are a parent or guardian who is at risk of missing Monthly Child Tax Payments due to your Unfiler status, you can submit your information to the IRS through the Child Tax Credit Unfiler Registration Tool .
It is not too late to receive payment
It’s too late to take advantage of the July payment, but this portal will allow you to sign up for the upcoming payments that you qualify for. Plus, any payments you haven’t made can be claimed as a credit on next year’s tax returns, so technically your money won’t be lost. You will receive the rest of the money when you file your taxes next April.
The Ascent recommends having your name, shipping address, date of birth, social security number for yourself and your dependents (or your other taxpayer identification), and bank account and routing information on hand when applying.
Check the status of your payment
If you have already filed taxes for 2019 or 2020 and you only need to check the status of your payment, through the Child Tax Credit Update Portal. However, keep in mind that you will need to log in with your IRS username.
The Child Tax Credit is one of the assistance programs that the government established in the American Rescue Plan to support the neediest families. This benefit is expected to reach millions of households, in six different installments and a last more ‘bulky’ payment.
IRS Announces Dates to Submit Missing Child Tax Credit Checks
The IRS confirmed that the past July 15 began sending the first advance payment (or first installment) corresponding to the Tax Credit for children. According to the agency, just last week some 35 million families received this check.
This would be the first of six payments of up to $ 300 per month that will reach the beneficiaries. If you are one of the eligible families, here are the dates that the IRS stipulated for the delivery of the five missing checks.
When will I receive my next five checks?
The first check was already sent on July 15, but there are still 5 checks to be delivered. This aid will reach families on 15 of each month from July to December through a direct deposit into your bank account or a physical check sent to your home address.
For this the IRS has established the following dates: July 15, for the first check that has already been sent, August 13 (since 15 falls Sunday), September 15, October 15, November 15, and finally the December 15. Although by 2022 a seventh check would be pending.
A seventh and bigger check
Help doesn’t end! Parents will also receive a one-time payment of $ 1,800 after the monthly checks of $ 300 that will arrive between July and December. This bulkier check is also part of the Child Tax Credit under Biden’s American Rescue Plan.
According to the legislation, child support can be up to $ 3,600. The first $ 1,800 will be divided into 6 payments of $ 300 that will arrive in advance monthly checks from July through December. The remaining $ 1,800 will come in a single payment.
How to get the seventh check?
Parents will need to submit their 2021 tax return in order to claim the $ 1,800 dollars that would complement the Child Tax Credit. Child Tax Credit checks will only be available to eligible families, primarily lower and middle class families.
It is then, when many ask, do I qualify? According to the IRS, about 39 million families they will receive checks of up to $ 300 per month for each child under the age of six or up to $ 250 per month for each child between the ages of six and 17. The maximum to receive would be $ 3,600 for qualifying children under 6 years of age or up to $ 3,000 for qualifying children between 6 and 17 years of age
Do I qualify for the Child Tax Credit?
According to the IRS, “the new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of $ 75,000 or less for singles, $ 112,500 or less for heads of household and $ 150,000 or less for married couples that file a joint return and for qualified widows and widowers ”.
But what if a person earns more than that? If a person earns more than this amount, they can also receive the aid, although to a lesser extent. “Above these income thresholds, the additional amount above the original credit of $ 2,000, whether it is $ 1,000 or $ 1,600 per child, is reduced by $ 50 for each additional $ 1,000 in modified AGI,” explained the IRS.