USPS rate hikes and slowdowns could delay verification of child tax credit


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Starting October 1, the U.S. Postal Service will implement new standards and rules for its First Class Mail Service. This will extend the delivery time by approximately 30% of packages and mail passing through its system.

See: Didn’t get your child tax credit? Here’s how to find it
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The changes are part of Representative Caroline Maloney’s “Delivering for America Act”. Maloney is also chairman of the Control and Reform Commission and is pushing for the bill to overhaul the postal service and manage its massive debt.

The plan would effectively cut post office hours, cut overtime, increase postage rates for customers, and make postage even more expensive during vacation months. The USPS has struggled to compete with other delivery services like Amazon and generally digitize more services like paying bills online.

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

The slowdown in service may affect future child tax credit payments, which some people receive by paper check in the mail. Additionally, a Washington Post report says the new service delay is disproportionately affecting western states and parts of Florida and Texas. For residents of these areas, it is possible that their payment will arrive even later than those in other areas who may already be facing a delay.

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To avoid this, it is best to sign up for direct deposit for all future child tax credit payments to ensure prompt payment and delivery. This will require providing your personal banking information through a secure IRS site, including registration with

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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 banking and investment research. Georgina has written for Investopedia and WallStreetMojo.


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