Fourth Child Tax Credit Went Out Last Week
On Friday, October 15, the fourth payment of the child tax credit was released, going out to about 36 million people. While most received their payment via direct deposit, there were some that received it through paper check, and the IRS stated that it would take some time before the checks arrived.
There are some updates that you should be made aware of when it comes to the child tax credit. First, if the October payment was the first one you received, you will still be receiving the first three payments. The amount you would have received in July, August and September will now be included in your payments for October, November and December. This of course means that those payments will be bigger than you may have initially expected.
The other major thing to note is that the IRS has taken steps to fix a glitch that occurred in their system for the September payment. The IRS said that the glitch only pertained to those that were filed as married but only one person made an address change or bank account modification in the child tax credit portal. They also stated that this only affected about two percent of the people receiving the payments.
The glitch that occurred saw these people receive more money than they were supposed to. The IRS said that the average overpayment was $31.25 for children between the ages of six and seventeen and $37.50 for children under the age of five.
In an effort to resolve this issue, the IRS said that it would be reducing the payments for those affected. This reduction will happen in the months of October, November and December. They said that you should expect about a ten-dollar reduction per child in these three months. The people impacted will also be receiving a letter from the IRS.
It is also important to note that the IRS says the glitch is fixed and shouldn’t be a problem for the rest of the payments.
Up next is the November payment. The date for its release is November 15. If you want to opt out of that payment or make any changes, make sure to do that by November 1. If you make any changes beyond that date, they won’t be reflected on your November payment. If you have any other lingering questions about the child tax credit, listen to our special report, where we cover some of the most frequently asked questions surrounding the topic.