The fourth installment of the advance portion of the child discount payments were deposited into the bank accounts of millions of eligible families last Friday. However, for many, the amount received was lower than expected.
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The IRS has stated that there are “multiple reasons” why people may see different amounts than they have received in previous months. One such explanation could be if one spouse changes address or bank account and the other spouse does not. This means that half of the other spouse’s payment may go to an old address or bank account, and the IRS may have flagged the account to prevent fraud. The IRS stated that at least full payment will eventually be made, but some may have seen lower payments for the months of September and October.
These types of errors are most common when: spouses do not have joint bank accounts and the payment is split between the two, or if a change was recently made. For example, if you’ve made changes to your direct deposit information, the IRS will automatically correct your next month’s payment if you received less than you should have, and no further action is required.
Those who recently signed up for the kid’s discount will get bigger checks this month (and next month) than those who signed up for the kid’s discount in July. Those who normally started receiving payments in July received either $300 per child under 6 and $250 per child aged 6-17. For every month missed since July, payments come in compound amounts for October, November and December.
Although the IRS portals for CTC application are closed, you can still apply for these flat-rate CTC payments until November 15 at GetCTC.org, a website created by the United States Department of the Treasury in conjunction with Code for America.
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Last updated: October 19, 2021
This article originally appeared on GOBankingRates.com: Incentive Errors: Was Your Child’s Tax Credit Check Smaller Than Normal? This is what’s going on