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Watch out for Child Tax Credit Scams

July 23, 2021

Did you receive a phone call asking you to verify information regarding child tax credit payments? It is likely a scam!

Attention families…be on the look out for scammers trying to steal your child tax credit payments. The IRS began sending out child tax credit payments of up to $3,000 per child and…already, criminals are trying to take advantage. 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.

Also, check out our blog, IRS Introduces Online Tools for Managing Child Tax Credit Payments for valuable information on the Child Tax Credit Online Portal and Eligibility Assistant.

What is the scam?

Nothing we haven’t seen before, but be alert to criminals who ask you to verify your child tax credit information via phone, email, text or social media. The IRS does not leave pre-recorded, urgent or threatening messages. The IRS will also not ask for payment via gift card, wire transfer or cryptocurrency. Never click on links in unsolicited emails or websites.

Most eligible parents don’t need to take any kind of action to receive the payments, as the IRS is using bank information on file from 2019 and 2020 tax returns to make the automatic deposits.

If you are not required to file tax returns, go to this page to provide the needed information for future payments.

Check out our recent blog, IRS Announces Dirty Dozen Tax Scams for 2021 for more information on the top scams in 2021 and how you can protect yourself.

Questions? Contact us.

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