The Internal Revenue Service today updated frequently-asked-questions (FAQs) for the 2021 Child Tax Credit and Advance…
The IRS will have two online child tax credit portals open by July 1. That’s where you’ll change your status and more.
The child tax credit payments are coming — the good news is 88% of American families will qualify for at least some money. However, to make sure you get the right amount (and to make sure you’re not overpaid), you may need to do a little work first. That’s where these two new IRS portals will come in.
There’s still a lot we don’t know about the two portals but they will be key to updating your information — for instance, if you don’t normally file a tax return, if there’s a change in the number of dependents or if you want to opt-out of the monthly payments. We’ll tell you everything we know so far. We update this story as we get new info.
As you prepare for your payments from the IRS to arrive, here are some different ways to use your child tax credit checks, how you may receive your payment (hint: it could be on a debit card) and how you can claim an additional $8,000 to $16,000 credit for child care expenses.
Right now, we know there will be two online IRS child tax credit portals to help you make changes. Here’s what they’re for.
See more details for each of the portals below.
Taxpayer families will be able to make changes to any life circumstances since they last filed their taxes, such as an income change and child custody status. For example, if you started making less money this year, you’ll want to update the IRS about those changes so you can get the correct child tax credit amount.
If you had or will have a new baby this year, it’s important to let the IRS know, so you can receive your payment for up to $3,600 for that child. The same applies if you adopted a child or if you gained a new child dependent since you last filed your taxes.
Also, if you’ve gained full custody of your child, you’ll be the parent who receives the money for your kid. Note that parents who have shared custody will not each get a payment. This is important for domestic violence survivors, Nina Olson, executive director of the Center for Taxpayer Rights said during an IRS oversight hearing. “That change of circumstances portal should allow them to enter their change in marital status and also where the children are.”
The IRS has set an open deadline of July 1, though we don’t have an exact date yet. The portals could come online sooner than that. The IRS is simultaneously processing tens of millions of tax returns, which may affect the timeline while it also organizes the child tax credit program.
The main portal will let you opt out of receiving the monthly child tax credit payments. What does that mean? It means that instead of receiving monthly payments of, say, $300 for your 4-year-old, you can wait until you file your 2021 taxes next year to receive the $3,600 lump sum amount.
You may also want to opt out because you’re expecting your circumstances to change and don’t want to update your information in the portal.
The IRS will open a second portal dedicated to people who don’t typically file their income taxes. This child tax credit portal will allow this group to give the IRS their updated information, including the number and ages of their qualifying child dependents.
The portal is expected to let tax nonfilers submit a simplified electronic form to the IRS to secure their eligibility. This group would include people who don’t have bank accounts, as well as the homeless population.
Right now, the IRS is urging people to share information about the child tax credit to those who don’t have permanent addresses. By doing this, you’re helping make sure eligible people receive the payments they’re eligible for. You can share the information about the portals with them so they know about the programs to help them file a tax return.
There are plenty of details that are still unclear about the IRS’ child tax credit portals, including:
For more child tax credit 2021 details, here’s how much money you can expect to get. Also, here’s what it takes for you and your dependents to qualify for the payments.
Order would put an end to Navient’s years of abuse of students and taxpayers in…
Running a home-based business comes with many perks—flexibility, no daily commute, and the comfort of…
Tax season can be a time of anticipation and excitement, especially when you’re expecting a…
It's that time of year again – Tax Day 2024 is here! Today is the…
The Protecting Americans from Tax Hikes (PATH) Act was created in order to protect taxpayers…
The IRS’s “Where’s My Refund?” tool will be updated by February 17, 2024, for many…
This website uses cookies.