I missed $ 720 in child tax credits due to an IRS error
A single mom is forced to choose between buying Christmas presents for her daughter and paying rent this year due to a child tax credit issue.
Rebekah Landin, 28, who lives with her four-year-old daughter Olivia in Michigan, has so far missed $ 720 in child tax credit advance payments.
She told The Sun that she received $ 360 for August and September, with the higher monthly payments reflecting the fact that she did not receive any in July.
However, since the last payment, her account now says eligibility is “on hold” and she has not received any credit for either October or November.
She is also concerned that she will not see any cash on December 15, when millions of American families will receive their last down payment in 2021.
Rebekah, who works in a tobacco and vape store and earns $ 11 an hour, told The Sun: âDue to the situation with Covid, I have a hard time with the bills.
âSo when it comes to the child tax credit, it was helping me catch up while supporting Olivia. “
However, due to the issue with the child tax credits, Rebekah decided not to pay the rent or some bills to give “my daughter the Christmas she deserves.”
âIt sounds terrible, but I grew up in a poor family with my mother, a single mother of four.
“And I know what it’s like when you wake up and your mom has to tell you that she couldn’t buy Christmas presents because she couldn’t afford them.
“I don’t want to do this to Olivia, even if it puts me in a hole and damages my credit rating.”
Rebekah estimates that she earns between $ 700 and $ 800 per week at the tobacco store, which translates into pre-tax income of up to $ 3,200 per month.
She aims to work at least 40 hours a week, but caught Covid last month, meaning she missed a month’s pay.
She said: âThe whole month of October was the worst thing I have ever had, I couldn’t pay a single penny for the bills.
“On top of that, the IRS told me I wouldn’t get my child tax credit, so I knew Christmas was wasted.”
The wave of trouble has left Rebekah without enough money to buy food for herself, despite receiving $ 200 a month in food assistance for her daughter.
In 2019, she had an income of $ 16,000 during the year from a job as a waitress.
She also received $ 18,000 in unemployment benefits when the business later closed due to Covid.
She said she had been filing taxes “for years,” but the IRS told her it was reviewing them again.
The IRS added that if the “pending” note on her account isn’t sent before the last payment, she will have to claim the child tax credits next year.
The IRS declined comment when contacted by The Sun.
This is because a federal law prohibits federal employees from discussing the tax matters of certain taxpayers.
Who is eligible for child tax credits?
Each household with children that qualifies for the final stimulus check of $ 1,400 should receive the children’s credit money.
The maximum credit is available to taxpayers whose modified adjusted gross income (RGA) is:
- $ 75,000 or less for singles,
- $ 112,500 or less for heads of household and
- $ 150,000 or less for married couples filing a joint return and eligible widows and widowers.
If you earn more than that, the additional amount above the original $ 2,000 credit – either $ 1,000 or $ 1,600 per child – is reduced by $ 50 for every $ 1,000 of AGI changed.
Child tax credits are $ 3,600 per child under six, $ 3,000 per child between six and 17, and $ 50 for college students up to the age of 24.
Combined with the $ 1,400 checks and other items, that could cut the number of children living in poverty by more than half, according to Columbia University’s Center on Poverty and Social Policy.
Time is running out for parents to opt out of the December final payment.
Plus, we’ll tell you what you can do if you still haven’t received your November payment.
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