Later this week, millions of Americans are getting another stimulus check — most of which will be distributed in the form of an electronic bank direct deposit. What’s coming is actually a new child tax credit payment, #4 in a six-check series. And it’s scheduled to go out on Friday, October 15.
This check, like the three that came before it, will give parents of eligible children a few hundred extra dollars. It’s a benefit made possible by the $1.9 trillion “American Rescue Plan” stimulus law from earlier this year. And in this post, we’ll tell you everything you need to know about this new round of checks. Including who’s eligible to get one.
New child tax credit payment this week
As with the previous rounds of payments, this new wave coming on Friday will transfer billions of dollars from the federal government’s coffers to millions of Americans.
Once again, here’s the basic info about these checks. For every child in a household between the ages of six through 17, Friday’s check will include $250. The amount is $300 for each child under age six. And after Friday, there will be two more of these child tax credit payments — one on November 15. With the sixth and final check coming on December 15.
There’s also a companion benefit to these checks that will come in 2022. The stimulus law increased the maximum child tax credit amount that families can get, per child, to as much as $3,600. The law structured this benefit, though, so that families could get half of the payment now. In the form of an advance payment of sorts.
The balance of the child tax credit amount that families are due to receive will come in 2022 when they file their federal income taxes. After December 15, a family can simply add up all six child tax credit payments they received. Whatever that amount is, that’s how much they’ll also get as a tax credit next year.
Some important additional points:
As things stand now, these monthly stimulus checks are scheduled to end on December 15. President Biden is on record as saying he supports a continuation of this benefit. But getting such a thing through the current Congress would no doubt be a tall order. Particularly since Democrats, who control both houses of Congress right now, have been having trouble passing a budget as well as legislation to increase the nation’s borrowing authority (aka, the debt ceiling).
2022 is also a midterm election year. Meaning, it will arguably be especially hard for something politically dicey, such as new stimulus checks, to get passed in Congress.
Also, be aware: The IRS is sending out a letter by the end of the year, with details on your child tax credit payments that you’ll want to hang on to. You’ll need to use the information in this letter next year when you file your federal income taxes.