The Internal Revenue Service will not be able to issue monthly payments of the new stimulus check-like expanded child tax credit payments on time because of delays caused by setting up a system to pay out millions of dollars, according to the Congressional Research Service (CRS). CRS said that the IRS had not yet established an effective method for changing its systems before the 2020 tax filing season.
The IRS tax-filing season is upon us. The IRS said it’s creating a system to pay out millions of dollars for those who qualify for the credit and want to use Free File. It said, “the vast majority” of taxpayers can now file their taxes for free using Free File through one of the two main providers: TurboTax or H&R Block; those without access can still use other forms (and remain eligible for the credit).
The new child tax credit is for $3,000 for each child under 6 and $3,600 for each child. The credit will be refundable and available to families with children who are under 17.
Unlike the old child tax credit, this one is not just for low-income families. It also applies to higher-income earners who may have been eligible in previous years but were missing out because they didn’t make enough money to take advantage of the existing law.
Stimulus Check For Children
In 2019, about 10 million people received credit for their children’s care. The IRS estimates that more than 16 million families will benefit in 2022. The CRS report also suggested that enacting a permanent child tax credit could cause other problems, including ‘the potential for negative behavioral responses (e.g., mothers staying home with their children).’
Congress should create an efficient way to deliver these tax credits to Americans who need it — and give them a head start on their 2021 taxes,’ said Keith Fogg, a CRS analyst. ‘During the 2020 tax-filing season, many individuals would receive refunds that they could save or spend immediately.’
At the moment, taxpayers who qualify for stimulus check-like child tax credits are notified of their eligibility via mail after they file their returns. This means that many families have already filed their taxes before learning if they’re eligible for more money back.
The Internal Revenue Service will not be able to issue stimulus check-like monthly payments of the new expanded child tax credit payments on time because of delays caused by setting up a system to pay out millions of dollars. The IRS will instead provide one lump stimulus check-like sum at the end of the year, but you’ll have to wait until 2022 to get it.