Last week, the IRS sent close to $15 billion toas a part of the expanded program. Most parents have received their first payment by or mail. However, the advance payments program is facing a few bumps with the first round of payments. Parents are reporting issues and some are still waiting for the extra money.
If you need to update any banking information or you’re experiencing payment problems, you’ll need to try to get that fixed by Aug. 2 by using the. You can update your banking information, check your payment history to see if a payment was sent, and correct any errors that could be holding up your money. And remember that early payments are optional. It’s not too late to unenroll from the monthly checks if you’re worried about next year if you don’t qualify.
We’ve compiled the top FAQs to help answer some of your questions about the child tax credit below. In the meantime, the IRS has tried to make it easier for parents to check on the. And heads up, if you want to use the Update Portal to manage your payments, you may need to if you haven’t already. We’ll update this story regularly.
Why haven’t I received my child tax credit if I am eligible?
If you qualify for the enhanced credit but haven’t received your payment, it could be for a number of reasons. If you filed your taxes, check the Update Portal to see if your payment is coming by mail. If so, give it several days as it could take a bit longer to arrive. If you have direct deposit set up, make sure all the information is accurate. Note that if you didn’t set up your banking details before June 28, you should expect to get a paper check for the July payment.
If everything looks correct but you still didn’t get a payment, you may need to file a payment trace with the IRS. To do that, you’ll need to completeand mail it to the IRS. Only do this if it’s been at least five days since the scheduled deposit date or four weeks since the payment was mailed by check.
Reasons you didn’t get a child tax credit payment
|The problem||What to do|
|You didn’t file a 2019 or 2020 tax return.||Use the IRS nonfiler portal.|
|Your payment is coming in the mail.||Give it time to arrive as it could take several days.|
|You can’t find any reason why you didn’t get a payment.||It may be time to file a payment trace with the IRS.|
What if I didn’t file my taxes? Am I still eligible for child tax credit payments?
The IRS is using your 2019 or 2020 tax return to determine your child tax credit eligibility. If you didn’t file your taxes, you may still be eligible for advance payments — you’ll just have to complete an extra step. You can use theto register for future payments. If not, the IRS may not have the most updated information — especially if you had a child during that time. It’s best to sign up soon to start getting payments if you qualify.
The IRS portal says I’m not eligible, but I still got a payment. What should I do?
With the IRS sending out millions of child tax credit payments, along with keeping up withand , it’s certainly possible the agency could have made a mistake. For instance, some people who weren’t qualified for the stimulus checks still received payment.
If you’re absolutely positive you’re not eligible for the enhanced child tax credit payments but you got a payment anyways, you’ll need to return that money to the IRS. Start by using the IRS Update Portal to— the deadline to opt out of the next payment is Aug. 2. This will help prevent you from having to pay back more money when you .
On the other hand,are reporting that despite the showing they aren’t eligible, they do meet the requirements and did receive their first payment. We’ve contacted the IRS for more details on this situation.
What should I look for in my bank statement to know if the child tax credit was deposited?
Aside from the IRS portal showing your payment was issued, you can check your bank account for the deposit. According to the White House website, transactions will contain the company name “IRS TREAS 310” with a description of “CHILDCTC” and an amount for up to $300 per kid. Don’t get this deposit confused with those for stimulus checks, which show up as “TAXEIP3” when deposited. Also, if you’re waiting on a tax refund, it’ll show up as “TAX REF.”
Will I have to repay any child tax credit money to the IRS?
It depends. If you’re eligible for the full amount of child tax credit money, you won’t have to pay it back. However, if you don’t qualify for the full amount because of a change in your income or number of dependents but receive the full amount anyway, you may need to pay back that extra money.
The IRS is using what it calls “payment protection” so if you do receive an overpayment but fall below a set income level, you don’t have to pay back an overpayment. Above that income level, you will have to pay back some or all of the extra money. Here’s more on the income levels and.
Will advance child tax credit payments continue next year?
As of right now, the enhanced payments for this tax year. That means after you get your final payment with your tax refund in 2022, the child tax credit will revert back to its original amount. However, it’s possible President Joe Biden and Congress could come to an agreement to extend the payments in 2025 — or make the changes permanent. Last week,he is urging Congress to do that: “I say to my colleagues in Congress: This tax cut for working families is something we should extend, not end, next year.”
While no decision has been made yet, we’ll keep you updated on the outcome.
For more information, here’sof future child tax credit payments. Also, here’s how to if you didn’t receive it. Not sure you got the right amount? Use to see how much you should get.