When will you receive the $ 3,600 child tax credit? That’s when payments can arrive and how often

In recent weeks, the IRS has sent over 120 million stimulus checks via direct deposits, paper checks and EIP Cards (track your payment here) O third payments are just one of the ways in which the government is sending direct relief to qualified families (calculate your total payment); The $ 1.9 trillion stimulus project it also provides families with more money, including 2021 child tax credit (CTC).

The new CTC can more than double the amount of greater stimulus checks leaving, that maximum of $ 1,400 (including for dependents) CTC expansion allows eligible parents to claim up to $ 3,600 for each dependent child (here’s who qualifies for the new CTC tax reduction) This is an increase of up to $ 1,600 compared to the $ 2,000 that parents could claim last year for each dependent aged 17 or under in your tax returns.

Now the biggest questions arise: when could you start receiving your child tax credit checks and how often? We’ll explain that and more below. Here they are seven tax credits for 2021, more information about unemployment benefits, and what we know so far about whether a fourth stimulus check it could happen. This story has been updated recently.

When will your child’s tax credit payments begin to arrive?

While the American Rescue Plan stipulates that CTC payments will begin to arrive in July, a date not yet disclosed. The IRS will make additional information available on the expansion of the child tax credit “as soon as possible,” the agency said in a March 12 statement.

Are there any additional steps to be taken to obtain payment of the child’s tax credit?

The IRS asked taxpayers not submit an amended statement related to the new legislation and do not take any other “unnecessary steps”, he said on March 12.

IRS commissioner Charles Rettig said that payments will be automatic for those who submit your 2020 tax returns by May 17, the new fiscal term.

Although, non-filers will need to file an income tax return to obtain credit, even if they generally do not file tax returns.

How often will I receive CTC payments?

The idea is that the child tax credit is paid “periodically”, according to the text of the stimulus bill, from July to December. However, the IRS is still working to determine how often it will be able to withdraw checks – and whether that could even reach a monthly distribution.

When asked if the agency could start making payments in July, Rettig said that “this deadline may change in some way”, but that the agency is committed to achieving the goal. “I think it can be a challenge to enter the month immediately after use,” he said.

The amount you would receive would be half of what you owe in the year, according to the new stimulus account, and you will receive the other half of the payment with your 2021 tax refund.

If paid monthly, payments would be divided up to $ 300 per month for each eligible child aged 5 and under, and up to $ 250 per month for each child aged 6 to 17 years. Note that this amount is gradually eliminated for those with higher incomes – for single people who earn more than $ 75,000 a year, heads of households who earn more than $ 112,500 a year and couples who earn more than $ 150,000 a year.

Child tax credit amount of 2021

Was	Amount you can get per child
5 years or less	Up to $ 3,600, or $ 300 per month if monthly payments occur
From 6 to 17 years	Up to $ 3,000 or $ 250 per month if monthly payments occur

Will the IRS directly deposit the child’s tax credit money or send it by mail?

When payments start to arrive, the Treasury and the IRS may well send payments in the same way they do stimulus checks, Joanna Powell, managing director and CFP of CBIZ, told CNET.

It has not yet been confirmed by the IRS, but if the agency uses the same method as stimulus checks, it would work as follows: direct deposit on file with the IRS, this is how you will receive your payment. Otherwise, you will receive your money as a Paper, checked.

When will the IRS online error correction portal be available?

The IRS said it will create an online portal for advanced credit, Powell said. The goal is to launch the portal by July 1, Rettig said during the subcommittee meeting, but the IRS will not have the resources to build it until after the end of the tax reporting season.

Once the CTC portal is available, recipients can log in to update their information if their circumstances have changed. For example, if you have a child in 2021, the IRS would not have that information on file yet, so updating these details can help you get a higher payment.

Will you have to return the money to the IRS if you receive more money than you should?

The CTC is not as flexible as the stimulus verification rules. If you receive more money than you should, you will have to return it. Powell explained that when you file your 2021 income tax return (in 2022), if your tax situation is not the one the IRS has in your system and you are not entitled to as much as you received, you will have to give the overpayment back.

To avoid this tax inconvenience, make sure that all of your information is up to date before payments start to arrive. Powell estimates that the portal will open in advance so that you can make the necessary adjustments.

Could you get all your money from CTC in a single amount instead of periodic payments?

Sure, but not this year. If you thought you could profit from all CTC money in July, this is not the case. Instead, you can choose not to receive periodic advance payments and receive a full amount in the spring of 2022 as a credit when you file your taxes. You can use the online portal to cancel. Again, you would not receive any money until 2022.

For more information, here are five things you should know about the $ 3,600 child tax credit for 2021. Also, here’s how to track your tax refund and your $ 1,400 stimulus check.

What happens when CTC payments end in December?

The final payment of the child tax credit is scheduled to end on December 31, 2021. President Joe Biden, however, wants to make the higher payments permanent, White House press secretary Jen Psaki said on Tuesday. : “We are having these discussions with Congress.”