IR-2021-201, October 15, 2021
WASHINGTON — The Internal Revenue Service and the Treasury Department announced today that millions of American families are now receiving their advance Child Tax Credit (CTC) payment for the month of October.
This fourth batch of advance monthly payments, totaling about $15 billion, is reaching about 36 million families today across the country. The majority of payments will be issued by direct deposit.
Under the American Rescue Plan, most eligible families received payments dated July 15, August 13 and September 15. Future payments are scheduled for November 15 and December 15. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. The vast majority will be issued by direct deposit.
Here are more details on those payments:
The IRS is currently sending letters to some Americans reminding them it is not too late for families who haven't filed a 2020 income tax return — including those who are not normally required to file because their incomes are too low — to sign up for advance CTC payments. Most low-income families can get these monthly payments. The IRS urges families who normally aren't required to file a tax return to visit IRS.gov for more information on how to file a return and receive their credit.
In September, the IRS successfully delivered a third monthly round of approximately 36 million Child Tax Credit payments, totaling more than $15 billion. Given the new components of this program, the IRS continues to work hard to make improvements and deliver payments timely.
After the September payment was issued, the IRS resolved a technical issue, which the agency estimates caused fewer than 2% of CTC recipients not to receive their September payment on the scheduled payment date. Payments have since gone out to affected individuals.
The impacted group primarily included taxpayers who recently made an update to their bank account or address information using the IRS Child Tax Credit Update Portal. In particular, the issue affected payments to married taxpayers filing jointly where only one spouse made a bank account or address change, which usually results in payments being split into two (between the existing account or address and the new account or address).
In some of these cases, the split payment caused a delay in making payments, and further caused individuals to receive slightly more than the correct payment in September. To address this, the payment that each spouse receives in October, November and December will be reduced slightly to adjust for the overpayment. For each taxpayer receiving a payment, the typical overpayment was $31.25 per child between 6 and 17 years old and $37.50 per child under 6 years old. This will result in about a $10 to $13 reduction per child in the three remaining monthly payments.
The IRS will send letters to affected individuals with this information. The IRS continues to closely monitor this program and the agency appreciates the patience of those whose payments were affected.
The IRS encourages partners and community groups to share information and use available online tools and toolkits to help non-filers, low-income families and other underserved groups sign up to receive these benefits.
Links to online tools, a step-by-step guide to using the Non-filer Sign-up Tool, answers to frequently asked questions and other helpful resources are available on the IRS' special advance CTC 2021 page. It's at IRS.gov/childtaxcredit2021.