It is July and you know what that means… it is the month the cash payments for parents start!
Yes, in case you haven’t heard, part of The American Rescue Act includes a raise for child tax credits for payments.
The raise, is entirely refundable and is being offered as a monthly cash payment every month from July – December 2021 with the other half being refunded on your 2021 taxes when you file them in 2022.
If you DID NOT opt out by June 28, 2021 you will be receiving the July 15, 2021 payment (if you qualify).
But, much like with the stimulus checks, many people found that the IRS did not have the correct information on where to send payments.
Luckily, there is a way you can ensure you receive your child tax credit payment in the correct place.
Keep in mind, the tax credits provide eligible families with up to $3,600 per child over the course of a year. The first half of the credits will go out as monthly payments of up to $300 per child, which start July 15 and run through the end of the year. The second half can be claimed when filing income taxes for 2021.
The Internal Revenue Service says eligible families can now use its Child Tax Credit Update Portal to update bank account information to decide where the future payments will be deposited.
You will want to do this ASAP to ensure the July 15th payment goes into the correct account.
You can also opt out of future payments or ensure your bank information is correct so you can receive payments monthly through December.