(CBS Philadelphia) – When will your first child tax credit advance check arrive? It may depend on how your last stimulus check or tax refund arrived. On July 15, the Internal Revenue Service will begin sending monthly payments to millions of parents for updated credit. These payments are a product of the US bailout adopted in March. The amount will depend on the household income and the number of children in the household. His arrival date should be next Thursday if the IRS has your latest bank account information and has issued direct deposits in the past. If you receive stimulus checks and tax refunds in the mail, it will depend on the vagaries of the US postal system.
How much will your check be?
The IRS will pay a total of $ 3,600 per child to parents of children under five. This increases to $ 3,000 for each child between the ages of six and 17. Half of the total will be paid as six monthly payments and half as a tax credit for 2021. The IRS will make a one-time payment of $ 500 for dependents aged 18 or full-time students. until the age of 24.
READ MORE: Child tax credit: are you entitled to a monthly check?
The updated child tax credit will be based on the parents’ modified adjusted gross income (AGI) as reflected in their 2020 income tax return. (AGI is the sum of wages, interest, dividends, alimony, retirement distributions, and other sources of income less some deductions, such as student loan interest, alimony payments, and pension contributions.) gradually at a rate of $ 50 per $ 1,000 of annual income over $ 75,000 for an individual and over $ 150,000 for a married couple. The benefit will be fully refundable, which means it will not depend on the recipient’s current tax burden. Eligible families will receive the full amount regardless of what they owe in taxes. There is no limit to the number of dependents that can be claimed.
Families who receive the # Child tax credit by direct deposit can plan their budgets around the receipt of the service on the 15th of each month, starting July 15, 2021. https://t.co/X085xjOZka pic.twitter.com/7WmTQwyRap
– IRSnews (@IRSnews) July 8, 2021
For example, suppose a married couple have a three-year-old and a seven-year-old and have a joint annual income of $ 120,000 on their 2020 taxes. The IRS will send them $ 550 per month starting on the 15th. July. That’s $ 300 per month ($ 3,600 / 12) for the youngest child and $ 250 per month ($ 3,000 / 12) for the older child. These payments will last until December. The couple would then receive the balance of $ 3,300 – $ 1,800 ($ 300 X 6) for the youngest child and $ 1,500 ($ 250 X 6) for the older child – as part of their repayment of 2021 tax.
Parents of a child outside an age bracket will receive the lower amount. This means that if a five-year-old turns six in 2021, parents will receive a total credit of $ 3,000 for the year, not $ 3,600. Likewise, if a 17-year-old turns 18 in 2021, parents will receive $ 500, not $ 3,000.
An increase in income in 2021 to an amount above the threshold of $ 75,000 ($ 150,000) could reduce a household’s child tax credit. The IRS has confirmed that it will soon allow applicants to adjust their income and custody information online, reducing their payments. Failure to do so could increase his tax bill or reduce his tax refund after the 2021 taxes are filed.
Eligibility requires that the dependent be part of the household for at least half of the year and be at least half supported by the taxpayer. A taxpayer who earns more than $ 95,000 ($ 170,000) – when the credit disappears entirely – not be eligible for extended credit. But they can still claim the existing credit of $ 2,000 per child.
Families likely to be eligible received a letter of qualification in the first half of June. He said, in part, “If you are eligible for CTC advance payments and want to receive those payments, you don’t have to do anything.” You will receive a letter with more details.
The second letter estimating the amount is pending.
READ MORE: Child Tax Credit: Three IRS Tools for Managing Your Monthly Checks
Families eligible to receive monthly # Child tax credit payments will receive a second personalized letter with an estimate of their monthly payment, which begins July 15. Learn more about #IRS at: https://t.co/AsJCmx1Xnc pic.twitter.com/Zdoz5F8VA3
– IRSnews (@IRSnews) June 16, 2021
What if I want to unsubscribe from monthly payments?
Parents who filed taxes in 2019 and / or 2020 and who qualify for income will automatically start receiving child tax credit advance payments on or soon after July 15. There is nothing more to do. But some parents may prefer a lump sum payment at tax time rather than six monthly payments and a smaller tax credit. The deadline for opting out before the July 15 payment has already passed. But the deadline for opting out of the August 13 payment is August 2.
Subsequent unsubscribe deadlines for future payments will occur three days before the first Thursday of the unsubscribe month. Here are the remaining unsubscribe times:
- Payment: August 13 / Unsubscribe deadline: August 2
- Payment: September 15 / Unsubscribe deadline: August 30
- Payment: October 15 / Unsubscribe deadline: October 4
- Payment: November 15 / Unsubscribe deadline: November 1
- Payment: December 15 / Unsubscribe deadline: November 29
the Child Tax Credit Update Portal allows users to ensure they are registered to receive advance payments. It also allows beneficiaries to unsubscribe from down payments in favor of a one-time credit when filing their 2021 taxes. Starting in early August, the tool will allow users to add or edit bank account information to direct deposit. Other upcoming features on the portal include viewing payment history and updating dependents.
To access this portal, users need an IRS username or ID.me account. ID.me is a login service used by various government agencies, including the IRS, Social Security Administration, and Treasury Department, to authenticate users. Users need a valid photo ID to create an account.
From the portal page, a user must click on the “Manage Prepayments” button. Log into your account on the next page or create an account. Once logged in, a user can view their eligibility and change how credit will be received.
What other IRS tools are available?
the Registration tool for non-filers for the child tax credit is to help parents of children born before 2021 who generally do not file taxes but are eligible for advance payments of the child tax credit. This means that parents who have not filed their 2020 taxes are not required to file and do not intend to file. (Parents who reported their dependents on their 2019 tax return should not use this tool.)
Users enter their personal information, including name, mailing address, email address, date of birth, relevant social security numbers, bank account information, and identity protection PIN. The IRS uses the information to verify eligibility and, once confirmed, will begin making payments. The IRS and experts advise using the tool on a desktop or laptop computer rather than a mobile device.
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the Child Tax Credit Eligibility Assistant allows parents to verify if they are eligible to receive advance payments of the Child Tax Credit. Users will need a copy of their 2020 tax return or, failing that, their 2019 tax return. It is also reasonable to estimate income and expenses for the appropriate tax year, although the result may not be exact. The assistant asks several questions to determine eligibility, but does not ask for sensitive information. No entry is saved.