A few weeks back I told you all about the monthly cash payments for families and while many parents are looking forward to this support, I have some rather bad news…
According to the IRS, The New Monthly Cash Payments For Parents May Be Delayed!
In the most recent stimulus bill, The American Rescue Plan, it passed a provision that would allow parents to receive monthly cash payments to help support their children through the pandemic.
The relief legislation expands the child tax credit to $3,000 annually per child aged 6-17 and to $3,600 for kids under 6 for single parents earning less than $75,000 annually, $112,500 for head of households, and $150,000 for married couples.
While rumors had it that these payments would begin disbursing in July 2021, the IRS Commissioner Charles Rettig is warning that the child credit money may be delayed, because the tax agency currently has its hands full.
“I don’t have the resources to devote to that portal until the filing season ends,” said Rettig recently told the House Ways and Means Committee.
The commish told lawmakers the agency will “do our best” to start getting the monthly checks out by July 1.
But he pointed out that the law only requires that they be sent “periodically,” not necessarily on a monthly schedule.
“It might be a challenge to get it monthly right out of the box,” said Rettig. “We’re focused on trying to get these payments out to the people in a meaningful manner and a meaningful time frame.
In case you didn’t know, the pandemic has thrown businesses everywhere through a loop hole and so has the IRS.
Many of the IRS staff has been sent to work from home with limited access to much needed software and the IRS is entirely understaffed right now and they are swamped with tax filings, tax refunds and of course, stimulus checks.
How Much Will You Get In A Parent Monthly Cash Payment?
Every household with children that qualifies for the current $1,400 stimulus check is set to receive the money via the expanded child credit.
If you’re a family headed by a couple earning less than $150,000 or an individual making under $75,000, you’re slated to get a $250 monthly payment for each of your kids ages 6 to 17, from July through December. For children under 6, you’ll receive $300.
In total, depending on how old your kids are, you’ll receive either $3,000 or $3,600 for this year. The monthly payments will account for the first half, while the other half will be refundable next year when you file your taxes for 2021.