Child tax credit 2021: All about the upcoming stimulus payments

Millions of families across the United States await some extra cash this week from the Internal Revenue Services, who will start dispatching payments across the country to those who are eligible for the expanded child tax credit payments.

Here is all you need to know about the payments:

-The payments are expected to start in mid-October, with a series of payments being done on October 15 itself

-Total value of this fund stands at nearly $15 billion, which is a part of the stimulus programme initiated at supported by a majority of Democratic lawmakers

-The distribution method of the fund will be a direct deposit in most cases and can be as high as $300 per child. This bracket also makes up the majority of payments

-Those who have been classified under the low and middle-income categories can expect a total payment of $3000 for every child who is aged between 6 to 17. Parents of children who are younger than 6 years can expect a payment of $3600

-United States government has set no limit on financial benefits in terms of the number of children in the family

-The total payment has been split into two parts. One-half of the amount was paid as an advance on the 2021 taxes and have been split into 6 equal installments. The remaining amount will be credited in lump sum after the taxes have been filed

–Internal Revenue Services have also introduced a new tool that will allow families to receive the whole amount in one go when they file the taxes next year

-The credit payment, as a part of the stimulus scheme, kicked off in July 2021 and still has three payments remaining this year, including the one in October. Further payments will be made in mid-November and December too.