The Internal Revenue Service (IRS) has reportedly failed to send child tax credit payments on time, leaving about 700,000 households still waiting for their full benefit.
According to media reports, the IRS has sent payments to about 35 million households, but about 2% are still waiting for their September benefits because of a glitch in the IRS system.
In a statement, the IRS announced and apologized for the delay, saying, “We know people depend on receiving these payments on time and we apologize for the delay.”
They also said that the issue has been fixed since Friday so the married taxpayers who recently updated their bank account or address through an online IRS portal who were affected by the glitch would soon receive their child tax credit payments, HuffPost reported.
Biden Administration’s Good Move: Improving On Child Tax Credit Payments
This year, the Biden administration, along with the Democrats, have been credited for their efforts to slash child poverty by transforming the child tax credit. From being a tax-time refund for some low-income families, the child tax crdi has since evolved into a monthly cash benefit for the vast majority of households with children.
Though essentially a “child allowance”, the benefit has since transformed into what the Democrats called a “tax cut” for married parents who are earning less than $150,000. It doubles up as welfare program since eligible parents can receive $300 per child under 6 and $250 for kids under 18.
However, because of the September glitch, the pitfalls of doing the program on a monthly basis through the IRS has started to show though, as opposed to having it paid annually.
Earlier this year, the Democrats also announced that the scheduled payments will only lasy until December, though they are hopeful that the benefit will otinue through 2025 as part of the major budget reconciliation bill that they intend to pass sometime in the coming weeks.
The Affected Parents
One of the parent affectes by the delayed oayments because of the glitch, 32-year-old Derek Frye of Vandergrift of Pennsylvania, had come to expect a $1,100 deposit for his four kids, whose ages range from 2 to 12.
He said, “This month it’s been particularly rough because you kind of budget for that money. With the kids going back to school I spent a little extra on school clothes.”
He said he received his initial July payment through an H&R Block account, and said that he was one of millions who received his August payment as a paper check due to an “issue.” He then updated his account information with the IRS so he could receive a direct deposit this month, but because of the glitch, he only belatedly received a partial payment of $688 on Friday. He was unconvinced with what the agency said about some married parents receiving less if one spouse changed bank account information, because he and his wife share their account.
“Happy to get over half of it, but still wondering where the rest of it is or if it will come,” Frye said.