For one in four American children, a tax refund or a bonus is waiting in the mail, according to the Internal Revenue Service. But as money gets distributed this year, a number of low-income families claim they have not received a payment.
On Friday, President Trump signed a bill that quadrupled the child tax credit for qualifying children and raised the threshold for what qualifies as a child from $4,050 to $13,000.
A number of parents have been reported their checks bounced after they sent the IRS money they thought would be received. Some claim that the tax credit did not go through, while others say the IRS approved the credit only to question their bills or it failed to go through at all.
“I sent a direct deposit for the $800 credit but I got the same response I had been getting from the IRS: ‘We are responsible for the payment and we will attempt to provide the money back to you,’” said Luke Malek, who along with his wife Julie made the first instalment of the credit April 12. “That makes no sense why I have to mail in $1040.”
Mr. Malek said he would not be able to work in his restaurant job next week because of the poor health of his son. He said he believed the issue was related to the direct deposit—an e-filing option—that was supposed to be used to send the credit.
Meanwhile, the Checks That Give Back, a nonprofit that encourages employers to contribute to college scholarship funds, wrote on its Facebook page this week that “taxpayers are reporting that the IRS has failed to refund hundreds of thousands of dollars owed to employees” — “in the next few days,” the group said.
When contacted by The New York Times, a spokeswoman for the IRS said that the agency was working with thousands of taxpayers to address technical issues.
“We are aware of a small number of taxpayers who were not able to complete the direct deposit process,” said Danyelle Barnes, a spokeswoman for the agency. “We are working to resolve these issues.”