IRS Introduces Online Tools for Managing Child Tax Credit PaymentsJuly 06, 2021
Attention families…you’ll want to read up on two new tools offered by the IRS to help monitor and manage your monthly advance payments of the expanded child tax credit. The first payments arrive July 15, 2021.
Have you read our blog, Are You Eligible for Advanced Child Tax Credit Payments in 2021? You’ll want to check it out for some valuable new information regarding when your child tax credit payments may arrive. Recently, the IRS introduced two online tools to help you monitor and manage your monthly advance payments of the child tax credit. Here’s what you should know.
What is the child tax credit?
Check out our blog, Are You Eligible for Advanced Child Tax Credit Payments in 2021? for the details, but essentially, if you have children under age 17 at the end of a calendar year, you are eligible for a tax credit of up to $3,000 per dependent child on your return (increased from $2,000), or $3,600 for a child under age 6.
What are the new tools?
This new tool allows you to:
- See your eligibility and payment history
- Unenroll from advance payments (some may choose to do this so they can receive a lump sum when they file their return next year. This unenroll feature is also helpful to any family that no longer qualifies for the child tax credit or believes they will not qualify when they file their 2021 return.)
- Check the status of payments
- Update personal and banking information
Note that you will need an IRS username or ID.me account. If you don’t have one, you’ll need photo identification to create an account.
This tool asks a series of questions to gauge whether or not you are eligible for the child tax credit. You will need your most recent tax return, for either tax year 2020 or 2019 to use this tool. If you don’t have a tax return, you can use an estimate based on your income, filing status and the number of eligible children you claimed.
When do the first payments arrive?
July 15, 2021.
Here is the payment schedule, as issued by the IRS:
- July 15, 2021
- August 13, 2021
- September 15, 2021
- October 15, 2021
- November 15, 2021
- December 15, 2021
How are payments made?
You will receive the payment via direct deposit or mailed check.
Questions about the child tax credit and how you can benefit? Reach out to us.