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Barbarett Corbbins was relieved when she saw an extra $ 500 deposited on her bank account last week.
He had received letters from the IRS that he was eligible for tax credit payments for children for his two children, 10 and 17 years old, but had forgotten when the money it was for arrive. When he finally checked his balance, second week of July, on advice of a friend saw that she was getting $ 250 per child.
“I was like ‘Amen’ “, Corbinns said, who lives in Wheeling, West Virginia, with His sons. she was on medical leave from his job as a registration specialist at West Virginia University hospital since December and he is not sure when he can return. He will continue to get paid $ 500 every month until the end of the year.
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“I’m not working, so it definitely will be help I continue to deliver for my children and have the additional income I have need to take care of of our bills and all. “Her monthly electricity bill alone is about $ 370, she said, and so she’s looking for forward to get the extra cash to help with such expenses.
Nothing left over it will go to savings, Corbbins said, which it was in able to increase with the stimulus controls sent to her family over the course of the last year it’s a half.
Cut poverty in half
Last week, more of 35 million families with 60 million children got the first payments of the child tax credit by the federal government. According to the US Treasury Department and the IRS, about $ 15 billion was sent. The average payout was $ 423, which means some families received more and some less.
Payments come from the plus child tax credit, part of the signed American Rescue Plan in reads from President Joe Biden in March. The deed increased the existing child tax credit to $ 3,000 from $ 2,000 and added a $ 600 bonus for younger children of 6 for the 2021 tax year.
A half of the credit is distributed to families in rate monthly from July to December – for receiving families full credit, it will be $ 300 per month for children under 6 and $ 250 per month for those from 6 to 17.
While the credit goes to about 90% of children, it is very useful for low-income families who can struggle save or have been hit hard from the coronavirus pandemic. Education show it could reduce child poverty rates in half.
“It turned out good on time, “said Lafleur Duncan, 53, of Brooklyn, New York, who used the first payment a buy she 13-year-old son new Do you live. The future money want also help the family to pay for rent after both Duncan and her husband lost work during the pandemic.
About 86% of those who got the first the payment was done through direct deposit, according to the IRS. The reminder, like Marla Snead, 52, who lives with she 14-year-old daughter Carlee Turner in Chesapeake, West Virginia received paper checks. How soon when the check came, her and her daughter tidy new clothes for school online.
Marla Snead (right), with daughters Kelsie Dillard (left) and Carlee Turner.
Snead was thrilled to get the check, he said, and … money It will be a big help over the next a few months.
“It was a sigh of relief, ”Snead said.
The program it wasn’t without problems, however. Laurynn Vaughn, 37, is eligible for And should have received payments for his daughters aged 4 and 5.
But the money it’s not here yet, Vaughn said, who runs a nursery in Kissimmee, Florida, and it is also a notary and a process server. When he checked with theirs online portal, said it was still in suspended, but did not give more information on why; Vaughn filed taxes for 2020 and 2019 on time and is within the income brackets, he said.
“I’m waiting to see what happens, but I’m trying not to think about it or consider it why, you know, if I had been in a situation in which I was in desperate need [the money], would have been a problem”Vaughn said.
Laurynn Vaughn doesn’t count on payments of the tax credit on children who should be sent to his two daughters, aged 4 and 5. When the money arrives, said it will save more of it.
Source: Laurynn Vaughn
Even if it isn’t in able to get prepayments, her should to be in able to claim the full credit when submitting its 2021 taxes next year.
How ensure payment
If you haven’t received the first payment and you think you are eligible, there is still time to do so sure get the money in next months. Those who traditionally did not file the tax return and did not use the online The non-filer IRS tool to request stimulus checks can register through the of the agency sign-up function.
Even if you sign up later, you will still receive the full advance credit through December, according to the IRS. It will simply come in larger monthly payments a catch up for what did you miss.
Families can also update they information, like where they would like payments sent, or opt out of receive them to get the full credit when filing taxes 2021 next year. It will be also be a way for people return any payments they may have received in error, according to the IRS.
“The success of this program will really lie in implementation “, Arohi Pathak said, director of policy from poverty to prosperity program in the center for American progress. “What is really needed in this moment is a ton of awareness and ea ton of education for communities and low-income families, in especially those who they do not pay taxes ».
A problem facing the IRS is that often those who need the money the most are the most difficult to reach, including people who don’t file taxes because they don’t have enough earned income and still have to apply for more stimulus allowances than they can receive.
Democratic lawmakers are pushing to make credit permanent. Biden at least suggested expanding it for some more years in so that it does not stop abruptly in 2022.
“We hope this is permanent,” said Joanna Ain, associate director of policy to Prosperity Now, a financial non-profit literacy organization. “Much of the groups are really working hard to make this permanent. “
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