We understand that the things most important to you during these times are help, guidance and the ability to find the information you need in one place. We've compiled a list of resources and answers to frequently asked questions to help you get the information you need quickly.
Please note: Navy Federal isn't responsible for determining stimulus payment eligibility.
Members received payments via electronic deposit, paper checks or prepaid debit cards. The IRS used financial account and address information provided by members in their prior years’ tax returns.
The Child Tax Credit was a tax benefit payment granted to help low- to middle-income American taxpayers to help support their qualifying dependent children. The IRS distributed half the total credit amount to eligible taxpayers in advance payments over a 6-month period. These payments aren't taxable income. Eligible taxpayers can claim the remaining half of the payment when they file their 2021 tax return.
In 2021, legislation increased the maximum annual credit to $3,000 per eligible child ages 6 to 17 or $3,600 for children under 6. Eligible families received a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child between the ages of 6 and 17. Eligible children are defined as legal dependents who are U.S. citizens, U.S. nationals or U.S. resident-qualifying children.
Please note: This applied only to the 2021 tax year. Child Tax Credit payments are no longer being distributed.
Benefits were received as advance payments from the U.S. Treasury, beginning July 15, 2021. They were distributed monthly through the end of the year unless additional action was taken. All funds came directly from the Treasury and were based on individuals’ most recent tax return and how they elected to receive funds.
Provided their accounts met conditions for eligibility, members with an overdrawn balance were issued a temporary credit to bring their negative balance up to $0.00. Eligible members received the temporary credit within 1 business day of receiving their government stimulus payment or Child Tax Credit funds, giving them access to the full amount of their deposits.
Members remain responsible for their previous negative account balance. Beginning on Feb. 15, 2022, the temporary credit(s) will begin to be reversed. Members who have an outstanding negative balance will receive a notification by email (if we have an email address on record) or by letter before the reversal takes place.
Members who received these credit(s) were notified at the time a credit was posted. The notification included options for actions members could take prior to their reversal date, including:
If you have more questions about temporary credit(s) you received, you can reach us via eMessage when you sign in to online banking or call us at 1-888-842-6328.
In some cases, yes, this may happen. The full amount of any temporary credit(s) will be removed from member accounts beginning on Feb. 15, 2022, regardless of the account balance at that time. So, if your account balance is less than the amount of the temporary credit, the account may go back to a negative balance.
If you’ve made partial payment toward the temporary credit, the amount that’s removed may be less than the total original temporary credit amount(s). Here's a simple example:
Suppose your account was overdrawn by $100 at the time the Child Tax Credit (or stimulus check) was deposited in your account, and we gave you a temporary credit of $100 to bring your account balance up to $0. If you paid $50 toward covering the original $100 overdraw prior to Feb. 15, 2022, then only the remaining $50 of the temporary credit will be removed.
If your account credit is reversed and you’re concerned about your balance, we have resources that may help. You might also consider using our Personal Finance Counseling service. This free service can help you with setting goals, budgeting, improving your finances and more.