$882K in child tax credit out

The Department of Finance already distributed $882,000 in payments of the advance or increased child tax credit though direct deposit and checks, according to Division of Revenue and Taxation director Tracy Norita on Friday.

Of the $882,000 payments that have gone out, majority or around $700,000 went through direct deposit, she said at a radio press briefing.

“Eligible taxpayers will receive their payment as soon as we receive their information from them,” she said.

So far, since launching the CNMI Advance Child Tax Credit Update Portal last Aug. 27, 2,500 people have already registered, Norita said.

“So I continue to encourage those families that have not yet gone on the portal or have not yet submitted the advance child tax AdvCTC form update to please go ahead and do that so that we can get you your payment,” she said.

The CNMI is authorized to make monthly payments of the child tax credit to eligible families amounting to $250 or $300, depending on the age of the child. The payments will be up to December 2021.

Norita said anyone who had registered on the portal, passed validation without any errors, and had a complete submission will be receiving their payments.

She said they had a couple of batches of payments the other week and last week.

“So those that elected for direct deposit should see something in their bank accounts within a couple days,” Norita said, adding that they also have a batch of checks that will be mailed out.

The director encouraged eligible families to check the mail for their payments.

Revenue and Taxation is doing updates monthly and releases payments monthly as well.

“So again, it’s when they submit the updated information to us so that it can go through the regular processing for the advance child tax and the payment will be released,” Norita said.

The director noted that those who chose to receive the funds via direct deposit but put in an invalid information relating to their account number, those have been converted to checks. “So if you’re expecting a direct deposit and you did not see it, you might be getting a check in the mail if you input invalid information,” she said.

Norita said they have a team that’s working on the advance child tax credit program and they are continuing to improve their database.

Finance Secretary David DLG Atalig earlier disclosed that on a normal child tax credit of $2,000, they usually distribute $12 million to $14 million annually. Atalig said with the increased child tax credit, he is expecting about $20 million annually.

The American Rescue Plan Act, which was passed in the U.S. House of Representatives last March 10, contains the largest child tax credit ever for families. The credit goes from $2,000 per child to $3,000 per child for children from age 6 through 17. For children under age 6, the credit is raised from $2,000 to $3,600.

Any family with two working parents and an income below $150,000 is eligible for the full credit. Single working parents earning up to $112,000 are also eligible for the full credit.