Child tax credit will arrive by September 15 – here’s how you can spend your cash
PARENTS face a tricky dilemma of deciding what to do with their child tax credit payment when it arrives in their bank account next week.
The child tax credit was expanded earlier this year, and the monthly payments now equate to $3,600 annually.
Families who chose to receive advance credits in 2021 will receive their third monthly installment on September 15.
Those who opted out can expect to receive a lump sum next year.
Parents will receive $300 per month for every child they have under the age of six.
Meanwhile, for households with children aged between six and 17, the amount is $250 per month.
Families could use the extra cash to buy essential supplies such as groceries or medicine, according to CNET.
The tax credit could be used to pay for repair works on your car or dental treatment.
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Experts have recommended that families should use the cash to pay off any outstanding debts.
Bruce McClary, of the National Foundation for Credit Counseling, told CNET: “If you’re in a situation where you have a lot of what I would refer to as the ‘toxic debt’ paying those balances off should be your No.1 priority.”
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Alternatively, families could put the money towards a holiday once the Covid travel restrictions have ended.
Families could use the extra cash to treat their loved ones to a meal in a fancy restaurant or buy a luxury item such as a TV.
The next child tax credit payments will start arriving on September 15.
Subsequent stimulus checks will be sent to households on October 15, November 15, and December 15.
By the end of the year, up to $1,800 per child will have been sent and the remaining amount can be claimed when tax returns are filed next year.
It is too late to opt out of September’s child tax credit payment but Americans will have another chance to withdraw from the checks on October 4.
For parents who are making more money in 2021, opting out may save you from owing at the end of the year.
To stop the monthly payments before the next round, parents must use the unenroll feature on the Child Tax Credit Update Portal.
Ahead of September 15, the IRS has warned Americans not to fall victim to scammers that claim they have information about additional stimulus checks.
Officials say they have seen a rise in phishing scams throughout the summer months, according to WGN-TV.
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Scammers have tried to contact unsuspecting Americans via text, sending messages claiming they’re eligible for a new stimulus check and ordering them to enter personal information to receive it.
IRS bosses have urged Americans to check grammatical and spelling errors in scams.
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