Next round of child tax credit payments releases Wednesday – NBC Chicago
The third batch of monthly child tax credit payments are expected to be distributed to millions of eligible U.S. families starting Wednesday, according to the IRS.
The payments are part of the US bailout package enacted by President Joe Biden, which increases the comprehensive child tax credit, expands it to include 17-year-olds this year, and adds another annual benefit of $ 600 per child less than six years old.
Parents eligible for the Full Enhanced Credit will receive $ 300 per month per child under 6 and $ 250 per month per child 6 to 17. Payments are up to $ 3,600 per year for each child under age 6 and $ 3,000 for ages 6 to 17.
The full credit is available for all children aged 17 and under in families whose adjusted gross income for 2020 or 2019 is less than $ 75,000 for lone parents and $ 150,000 for a married couple filing jointly, and ends for people earning $ 95,000 and married couples jointly filing $ 170,000, even though they would still be eligible for the regular child tax credit.
The credit is fully refundable, which means families can still benefit from it even if they have no earned income or owe no income tax.
If you’ve filed taxes and the IRS already has your bank account information, payments should be deposited directly into your account on the 15th of each month.
But even if you didn’t file a tax return in 2019 or 2020, or if you don’t have to, you may still be eligible for the credit. The IRS has created an online tool for parents to register their information electronically.
Some people prefer to wait until they get a bigger tax refund when they file their 2022 tax returns early next year and might not want the monthly advance payments. To opt out, taxpayers can consult the Child Tax Credit Update Portal.
Although the extended credit ends in December, Biden has requested a four-year extension, which would require congressional approval.
If you still haven’t received your payments for July or August, there could be several reasons for this.
- The IRS may not have updated your address and bank account information. Visit the Child Tax Credit Update Portal to see if your information is up to date. You can also check the status of your payment on the portal.
- As mentioned earlier, eligibility is determined by 2020 tax returns, or 2019 if you haven’t yet filed for 2020 taxes or if your 2020 documents haven’t been processed. If you haven’t filed 2020 or 2019, you need to register your information with the IRS. You can save it on the IRS Portal.
- If your account and address information is correct and you still have not received your payment, you may need to file a payment record with the IRS. To do this, you will need to complete a Form 3911 and mail or fax it to the IRS.