Is the July 15 Tax Credit Being Deposited? Here’s What to Know
Learn what factors affect the July 15 tax credit deposit, including eligibility, payment status, and steps to take if you haven't received it.
These payments can provide financial relief, but not everyone qualifies, and several factors determine when or if the money arrives. Understanding eligibility rules, income limits, and potential delays helps taxpayers know what to expect.
Qualifying Dependents
Eligibility depends on whether a dependent meets IRS criteria. The most common qualifying dependents are children under 17 with a valid Social Security number who have lived with the taxpayer for more than half the year. The child must also be claimed as a dependent, meaning they cannot file their own return and claim themselves.
Other relatives may qualify if they meet support and residency requirements, including siblings, grandchildren, nieces, nephews, and parents. A dependent’s gross income must be below $4,700 for 2024 if they are not a qualifying child, and the taxpayer must provide more than half of their financial support.
Foster and adopted children qualify under the same residency and support conditions. In shared custody situations, only one parent can claim the child, typically the one with whom the child lived the most during the year. If custody is split evenly, the parent with the higher adjusted gross income (AGI) usually claims the credit unless a formal agreement states otherwise.
Income Thresholds
The amount a taxpayer receives on July 15 depends on their AGI. The IRS sets phase-out limits, reducing payments for higher earners. For 2024, the full credit is available to single filers with an AGI of $75,000 or less, heads of household earning up to $112,500, and married couples filing jointly with income up to $150,000. Beyond these thresholds, the credit decreases by $50 for every $1,000 of AGI above the limit until it phases out completely.
For example, a married couple with an AGI of $160,000 would see a $500 reduction. The credit phases out entirely at approximately $240,000 for single filers and $440,000 for joint filers. These limits focus the benefit on low- and middle-income households.
Payment Status
The IRS has scheduled the next round of tax credit payments for July 15, 2024. Most recipients will receive funds through direct deposit. Those who selected direct deposit on their most recent tax return should see the payment in their bank accounts on the scheduled date, though processing times vary by financial institution. Some banks release funds immediately, while others may take an extra business day or two.
Taxpayers receiving paper checks should expect longer wait times due to mail delivery and check processing. If banking details have changed or an account was closed, the IRS will attempt to deposit the payment using the most recent information on file. If the deposit fails, a paper check will be issued, which can take several weeks.
Taxpayers can check their payment status through the IRS’s online portal, which provides real-time updates. If the portal does not show a scheduled payment, eligibility verification or incomplete tax filings may be causing a delay.
Offsets for Debts
Tax credit payments can be reduced or withheld if the recipient has outstanding federal or state debts. The Treasury Offset Program (TOP) allows agencies to intercept payments for unpaid obligations such as federal student loans, past-due child support, and state income tax liabilities.
Unpaid child support is a common reason for an offset. The IRS works with the Office of Child Support Enforcement to identify individuals with past-due amounts, and any intercepted funds are sent to the appropriate state agency for distribution to the custodial parent. If an offset occurs, the taxpayer will receive a notice detailing the reduction and the agency responsible for collecting the debt. Disputes must be handled with the agency that initiated the claim, not the IRS.
Next Steps if Payment Not Received
Even if a taxpayer qualifies and has no outstanding debts, delays can still occur. The IRS provides tools to track payments and resolve issues.
Checking IRS Payment Tools
The IRS’s online payment tracker provides real-time updates on processing status and expected deposit dates. If the tracker shows that the payment was issued but has not been received, taxpayers should confirm that their banking details or mailing address on file are correct. If an incorrect bank account was used, the financial institution may reject the deposit, causing the IRS to issue a paper check instead. This process can take several weeks. Those receiving mailed payments should also consider postal delays, especially if they recently moved and did not update their address with the IRS.
Filing a Payment Trace
If a payment is marked as issued but has not arrived after a reasonable waiting period—typically five days for direct deposits and four weeks for mailed checks—taxpayers can request a payment trace by submitting Form 3911. This initiates an investigation into whether the funds were lost, misdirected, or stolen. If a check was cashed fraudulently, the IRS will provide instructions on how to proceed, including potentially issuing a replacement payment.
If a tax return is still being processed or flagged for review, the credit may be delayed until the IRS completes verification procedures.