USPS Rate Hikes and Slowdowns Could Delay Your Child Tax Credit Check

Open mailbox with letters on rural backgound.
Bet_Noire / Getty Images/iStockphoto

Starting on Oct. 1, the U.S. Postal Service will implement new standards and rules for its first-class mail service. This will lengthen the delivery time for approximately 30% of the packages and mail running through its system.

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The changes come as part of Representative Caroline Maloney’s “Delivering for America Act.” Maloney also serves as Chairwoman of the Committee on Oversight and Reform and is pushing for the bill to overhaul the postal service and manage its massive debt.

The plan would effectively reduce post office hours, curtail overtime, raise postage prices for customers and make postage even more expensive during the holiday months. The USPS has struggled to compete with other delivery services like Amazon and the digitization in general of more services like bill payments, being conducted online.

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The pandemic worsened a system already strapped for cash, as demand for home delivery of items surged coupled with an increase in the number of people voting by mail-in ballot for the 2020 election.

The slowdown in service has the potential to affect future payments of the Child Tax Credit, which some people receive via paper check in the mail. Additionally, a report by the Washington Post states that the new delay in service disproportionately affects Western states and parts of Florida and Texas. For residents of these areas, it’s possible that their payment arrives even later than those in other areas who will already possibly face a delay regardless.

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To avoid this, it’s best to sign up for direct deposit for all future child tax credit payments to ensure prompt payment and delivery. This will necessitate giving your personal bank information through a secure IRS site, including signing up for ID.me.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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