BBB warns of potential Child Tax Credit scams

National

BATON ROUGE, La (BRPROUD) – Financial help is coming for millions of families as the first child tax credit payments go out on Thursday.

President Joe Biden wants to make these payments permanent — he says it would cut child poverty in half and help economic growth. Meanwhile, some republican lawmakers say the payments will make parents less likely to work.

While this is good news for families expecting this money, it’s also good news for scammers who are wasting no time working to take your money before it even gets to you.

Families could get up to $300 a month for each child under five years old and $250 a month for children ages six to 17. The IRS is sending money by direct deposit, paper check, or through debit cards.

South Louisiana BBB Executive Director Carmen Million warns residents to watch out for calls from anyone claiming to be from the IRS and asking payments to get your tax credit.

“It’s just like any other situation where the government is in the news telling people that they are going to give them money, scammers are looking out and they’re getting their stuff ready to try and take advantage of you,” says Million.

Eligible families will automatically receive the Child Tax payment if they filed for taxes within the last two years.

To best avoid imposter scams, it’s important to note that government agencies like the IRS will not call, text, direct message, or email you.

The BBB and Federal Trade Commission shares these tips:

  • Do not give out any personal information like social security numbers, bank account information, or credit/debit card numbers
  • Eligibility requirements and payment disbursements are monitored by the IRS only
  • When someone is requiring payments by gift card, wire transfer, or cryptocurrency — it is likely a scam

If you have questions you are urged to contact the IRS directly or a CPA. For more information about scams or to report a scam, visit IRS.gov/childtaxcredit2021 and IRS.gov/scams.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.