The next round of the advance child tax credit is set for Nov. 15. But if you’re worried that you’re getting too much or too little money, well, the IRS is asking that some people who saw their incomes change this year take action by Monday.
On Monday, a new feature of an Internal Revenue Service online tool will allow any family already receiving monthly child tax credit payments to update significant income changes using the Child Tax Credit Update Portal at IRS.gov.
But families must act by Monday to update significant changes in income if they want to see any possible adjustment reflected in their Nov. 15 payment. You’d have to complete that updated income request before midnight Eastern Time Monday.
If you miss the Nov. 1 date, changes made by Nov. 29 would be reflected in the December payment, which is scheduled for Dec. 15.
Why would you want to update your income?
The IRS said the new income feature can help families make sure they are getting the right amount of advance child tax credit payments during 2021.
In late November, the IRS said it will launch a new Spanish-language version of the child tax credit update portal.
The new feature isn’t for everyone. It is mainly designed to help a family who wants to raise or lower their monthly payments because their 2021 income has risen or fallen substantially compared with 2020.
Many times, a big income swing can either raise or lower a family’s advance monthly payments of the child tax credit, the IRS said in its statement.
Some taxpayers should be cautious when it comes to the advance child tax payments, as some of that money could end up reducing a refund or lead to a bigger tax bill for some families.
A big concern with these advanced child tax payments is that people will receive them upfront based on the possible lower income they may have made in 2020.
And then when they file a 2021 income tax return with higher income next year, Many taxpayers may have to pay back some of what they received. If so, you might see a smaller tax refund or owe money.