Parents expecting their child tax credit for October might be in for a surprise if they see less money than what they expected due to the downward adjustments made by the Internal Revenue Services (IRS) for overpayments and mistakes during the September glitch.
According to Forbes, taxpayers with a downward adjustment between $10 to $13 per child will receive a letter from the IRS. It may impact the people who recently updated their profiles on the IRS Child Tax Credit Update Portal, particularly for married or joint filers who changed their bank accounts or addresses.
The overpayments may be reduced for the November and December payments as well. However, families who may have missed payments in the past three months may finally see the child tax credit money on their bank accounts this October.
Read Also: Child Tax Credit: Senator Manchin Wants Fewer Families, Only 'Working Poor' to Get Payments
Parents Left Confused
According to Detroit Free Press, some parents have gotten their reduced child tax credit payment before any advice from the IRS. Mom Sandy Harrison of Arkansas took to social media to express her confusion because she and her husband received $500 for July and August, then $313 for September. In the latest payment, they received $229 for two kids ages seven and 12 years old. They filed their income taxes in February 2020.
Other parents said their payments are down $155 to $115, way below the $250 to $300 range per child. With no clarification from the IRS, some taxpayers instantly assumed that there was another glitch to the portal. Accountant Mark Luscombe said that the IRS mentioned in previous announcements that payments would be adjusted if additional information about the taxpayers came in.
During the glitch in September, dad Brian Johnson did not get his payment via direct deposit. Instead, the IRS issued a check in the mail for $500. It was $300 less than the money disbursed to him in July and August. However, before he could ask the IRS, another $500 check arrived, which meant he had an overpayment. For his direct deposit for October, John said the IRS sent him $367, and he might opt out of the program because of all the confusing adjustments.
"We're supposed to be able to count on it," the father told CNBC. "Now I'm worrying, am I going to have the money for this cellphone bill, this car payment?"
Johnson said that the IRS should have "worked out the kinks" of the portal since it had been sending payments to taxpayers via direct deposit before the expanded child tax credit program started.
Extension Still Uncertain
Meanwhile, when this monthly disbursement ends in December 2021, parents may still get the last round of child tax credit payment of at least $1,800, give or take the adjustments, when they file for their taxes in spring 2022. While Congress has a proposal to extend this program for the next four years, its approval still hinges on the votes among lawmakers.
The Republicans are united in opposing the extension as it could create a sense of entitlement and prevent people from finding jobs because they have the dole-outs to rely on. The Democrats need to be on the same page so that this bill will pass, but some representatives see no need for the extension as it will cause the government billions of dollars.
In case of a tie in the votes, as Democrats and Republicans are 50-50 in the House of Representatives, Vice President Kamala Harris may serve as the deciding vote.
