The third payment of the recurring enhanced Child Tax Credit program was distributed on Wednesday, which gave households of about 60 million children direct deposit financial relief as many officials are warning against scams that target Americans who are waiting for stimulus money.
Authorities are warning residents of text messages that claim to be handing out stimulus money worth $1,400. Scammers are asking people to apply for the so-called government pandemic extra stimulus bonus in an attempt to acquire their personal information. While many Americans are eagerly waiting for another round of stimulus checks, there is currently no bonus relief package in place.
Growing Number of Fake Stimulus
The Internal Revenue Service (IRS) said that scammers will always be changing their methods of tricking people into giving away their money or personal information. Authorities emphasized that federal officials and organizations will never text, email, or contact an individual via social media to announce a quicker way of getting money, USA Today reported.
"We might, in very rare circumstances, call you. But in those cases, usually, there's a pile of IRS letters on your desk you've been ignoring, and you're sort of expecting the call," IRS spokesman Luis D. Garcia said. The official also issued a reminder to residents who are afraid of jail, foreclosure, deportation, or anything similar should not worry if they are communicating with the agency.
The latest payment under the enhanced Child Tax Credit program is giving families $300 for each dependent aged younger than six years and $250 for every child six years and older. The recurring payments will run until December and there is no limit as to how many kids are eligible to receive the payments per household, CBS News reported.
Enhanced Child Tax Credit Payments
However, families who have not yet received their payments can look at several factors to determine which is the reason their money is delayed. Some may need to file a tax return while others need to use the non-filer tool at the IRS website to make sure that they can receive their money.
The IRS's website tool is useful for people who need to report qualifying children who were born before 2021. Families who are not required to file a 2020 tax return can utilize the tool to get their money. People who have not gotten the full amounts for the first and second Economic Impact Payment program can also use the non-filer tool.
The enhanced Child Tax Credit program was made under Democratic lawmakers' $1.9 trillion relief package signed into law in March. However, the payments will only last until the end of this year. Many politicians are looking into extending the recurring payments through 2025 as part of their party's massive $3.5 trillion budget reconciliation bill.
Experts expect the enhanced Child Tax Credit payments to cut child poverty in the United States by half by 2021. An extension of the program would mean that 4.3 million children would be lifted from poverty for the average year, based on a recent Urban Institute analysis. The child poverty rate could drop by more than 40% from 14.2% to 8.4%, WLWT reported.
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