The IRS is beginning to send the first monthly payment of the new Advance child tax credit payments to millions of households. This payment will mean more cash flow for millions of Americans. But, many people have questions about whether to take the credit now or wait to take the full credit during the 2021 tax season beginning in January of 2022.
When Will the Advance Child Tax Credit Payments be Sent?
The Advance CTC Payments are scheduled to be delivered every month from July through December of 2021. The advanced payments will allow families with qualifying children to receive up to half of their CTC during 2021. The other half of the credit can be claimed when filing the 2021 tax return.
The payments are automatic, meaning, if you qualified based upon your 2020 or 2019 return the IRS will automatically send your Advance CTC to you.
If you prefer to wait and receive the entire credit with your tax return refund, it is up to you to opt out of the automatic advance payments. You can do this by creating an ID.me using the IRS Child Tax Credit Portal.
How Will the Advance Child Tax Credit Payments be Sent?
Using the information from either the 2020 or 2019 tax return the IRS will send direct deposits to your bank account. They will use the most recent account that is on file.
If a family doesn’t have a bank account direct deposit on file with the IRS, they can set up those payments using the Child Tax Credit Portal. Or, they can receive payments in the form of a check which will be mailed to the address listed on their most recent tax return.
How the Child Tax Credit Portal Can Help
The IRS Child Tax Credit Update Portal is available for families to ensure that payments are delivered accurately.
- Using the portal families can check to see if they’re enrolled to receive advance payments.
- They can opt out of getting advance payments.
- Updates to bank account information for monthly payments can be made.
- Families who didn’t file a tax return in either 2020 or 2019 but have qualifying children, can enroll in the advanced child tax credit using the portal tools for non-filer status.
This information is not intended as legal or tax advice. Cowdery Tax and its representatives does not offer legal or tax advice. We offer services for business bookkeeping, payroll, tax payments, and personal tax filings. We share information that is publicly available. Tax laws may change with or without notice that may alter or change the information contained in this publication.