Stimulus payments are being sent out by the federal government this fall. The next payment is scheduled to be delivered in about three weeks. The payments are part of the American Rescue Plan that President Joe Biden signed into law in March.
In the middle of October, most American families will receive another payment as part of the expanded federal Child Tax Credit.
The American Rescue Plan expanded that tax credit and allowed for the first half of that credit to be paid directly to families. The payments are coming each month until December. On Sept. 15, the last round of payments went out — about $15 billion dollars worth of payments. However, the IRS said that there were some problems delivering that money.
The next check is expected to be delivered to bank accounts on Oct. 15, for those receiving the money through direct deposit. Those getting the payments with a paper check through the mail will have to wait until the U.S. Postal Service delivers it.
Families with children under 6 years old will get $300 per child. Families with children between 6 and 17 years old will get $250 per child. These payments represent the first half of the expanded Child Tax Credit — a maximum payment of $3,000. The rest of the money can be claimed by filing taxes in 2022.
According to the IRS, the Child Tax Credit begins to be reduced to $2,000 per child for those with a modified annual gross income (AGI) in 2021 that exceeds:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
- $112,500 if filing as head of household
- $75,000 if you are a single filer or are married and filing a separate return
The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which the modified AGI exceeds the income threshold described above.