With two weeks to go until the first payments for the expanded Child Tax Credit begin being sent out, the IRS has launched a pair of portals that allow qualified parents to access the credit and determine how they want to receive that money.
Included in those portals is the ability to update your banking information so that money is sent to the proper account, which could be different than the information the government has on file for you.
While that’s welcomed news for those who need to make some changes to their banking information, it is worth noting that any changes made now, won’t take effect until the second checks are sent on Aug. 13. The first checks hit banks accounts on July 15, but it’s too late into the cycle for updated banking information to be processed in time for the first checks.
“Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS. Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner,” reads a portion of a press release from the IRS about the option to change bank account information.
To update your information, you need to visit the IRS Child Tax Credit update portal and click on the “manage advance payments” button to determine if you’re eligible and how the IRS is planning to send out your payment.
From there you will either have to sign in with a previous created IRS account or create one through the ID.me option. The ID.me option requires you upload pictures of your state verified identification and allow the IRS to use your webcam or camera phone to scan your face and match that picture to the one on your ID.
The process for signing up for the ID.me account takes about 10-15 minutes.
The program will also send you two-factor authentication codes on your mobile phone to verify your identity. Once that is complete you will then have access to your profile, determine which banking info the IRS has on file and make any necessary changes. Specifically you will see the routing number for your bank on file and the bank account number that will receive the payment on July 15.
You cannot list more than one bank account per individual as the entire amount owed to you must go into one account.
Your account profile will also allow you to decide if you want to stop receiving the advance payment and instead apply the money to your 2021 tax return. However, if you choose to decline the advance payment, you won’t be able to change that decision again until late September.
The advanced payments were approved when the expanded Child Tax Credit was approved as part of the American Rescue Plan in March. The expansion increased the credit from $2,000 per child to $3,000 for each child aged 6 to 17, and $3,600 for children under 6.
The IRS is using your 2019 or 2020 tax returns to determine your qualification status and how much money you will receive if qualified. If you have already submitted your 2020 tax return, you do not need to do anything else as the IRS will review it and determine your eligibility. If you haven’t filed for 2020, your 2019 returns will be used but you will be able to file for an adjustment.
Those adjustments can include things like changes in income status, the birth of a new child, filing status (such as getting married) and more.
Income thresholds are used to determine eligibility based on the adjusted gross income (AGI) of the tax filer. For a single person, their AGI cannot exceed $75,000 a year in order to receive the full credit. Heads of households may earn up to $112,500 and still qualify for the full credits. Any individual earning more than that will not qualify for the larger credit.
Married couples, those who file jointly or qualifying widows or widowers will receive the full benefit if the combined adjusted gross income is less than $150,000. Adjusted gross incomes above that will see their credit reduced by $50 for every $1,000 over the threshold.
For single filers with incomes of $200,000 or less and joint filers with incomes of $400,000 or less, you can still claim the previous Child Tax Credit of $2,000 per child.
The expanded credit allows parents for the first time to receive actual money as an advance payment instead of a credit on their tax return. The advanced payments are worth half of the total credit available to the family and will be sent out monthly through the end of the year starting on July 15.
For example, a qualified family of five with three children aged between 6 and 17 would receive $750 a month totaling $4,500 in payments. The other $4,500 would then be applied as a credit on the family’s 2021 tax return.
If that family would rather receive the entire expanded credit on their 2021 tax return, the IRS would then credit the family for $9,000 on next year’s returns and they will not receive a monthly payment.
READ MORE:
Don’t want the new advanced Child Tax Credit payments? There’s a deadline to unenroll
Child Tax Credit payment schedule released as IRS sends letters to 36 million families
Fourth stimulus possible? Biden ‘happy to hear’ range of ideas on economy, including more checks
Already have your third stimulus check? You could still be eligible for new ‘plus-up’ payment
‘Plus-up’ stimulus payments may not be worth as much as you expect, here’s why
Waiting for your tax refund? Here’s how to track the status of your payment
"direct" - Google News
July 01, 2021 at 10:06PM
https://ift.tt/2TuBVXZ
Child Tax Credit portal allows you to update direct deposit info; here’s how you can make changes - MLive.com
"direct" - Google News
https://ift.tt/2zVRL3T
https://ift.tt/2VUOqKG
Direct
Bagikan Berita Ini
0 Response to "Child Tax Credit portal allows you to update direct deposit info; here’s how you can make changes - MLive.com"
Post a Comment