When will your $ 3,600 child tax credit check arrive – and how often?

O new stimulus checks are being delivered at a steady pace. New information for Social Security beneficiaries announce another wave of payments for this group, and for others waiting for their third stimulus checks to get through paper checks and EIP Cards (track your payment here) But the $ 1,400 stimulus payments are just one way qualified families will receive more money this year. Families with children under the age of 17 may receive more than one stimulus check if they qualify for the 2021 child tax credit, also called CTC.

Detailed in $ 1.9 trillion stimulus project signed in early March, the expansion of the CTC allows eligible parents to claim up to $ 3,600 for each dependent child. 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 last year. tax returns.

But with the IRS now suing millions of stimulus checks and hundreds of millions of tax returns between now and the new deadline for May 17 tax day, what does this mean for the child tax credit schedule? When would the first CTC payment arrive and how often would you receive it? Can they become permanent? We’ll explain that and more below. In the meantime, here’s 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 the 2021 Child Tax Credit payments begin to arrive?

We know a general timeline, but the details still need to be worked out. O American Rescue Plan stipulates that CTC payments will begin to arrive in July. However, no specific date has been released for when payments will be made. 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.

How often will CTC checks be distributed?

The child tax credit will be paid “periodically”, according to the text of the stimulus bill, from July to December. However, the IRS has not disclosed the frequency with which it will be able to receive the checks.

Monthly delivery has been a goal and the initial language used in previous versions of the stimulus bill. However, the language has changed to “periodically”, perhaps in part because of the extra burden placed on the IRS to also distribute tax returns and stimulus checks. In other words, some may have thought that a monthly delivery cycle was either too ambitious or unrealistic.

“I think it can be a challenge to get into the month right away,” said IRS commissioner Charles Rettig, when asked about the schedule.

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

How will I be paid at CTC: Direct deposit, mail, some other way?

When payments start to arrive, the Treasury and the IRS may well send payments in the same way they do stimulus checks, Joanna Powell, CBIZ’s managing director and certified financial planner, 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. It is not clear whether Social Security beneficiaries, such as people in SSI, SSDI and veteran programs, would receive their CTC through their Direct Express card, just as millions could receive their third stimulus check.

Do I have to do anything to get the child’s tax credit money? What if I have already completed my 2020 taxes?

Taxpayers must not file an amended statement related to the new legislation and must not take any other “unnecessary steps”, said the IRS on March 12. 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 a 2020 income tax return to obtain credit, even if they generally do not file tax returns. This will inform the IRS of how many dependents there are in the family who would count towards CTC benefits.

When will the IRS error correction portal be available?

The IRS said it will launch an online portal on July 1, Rettig said, 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 tax credit payment.

Will I have to return the money to the IRS if I get more money than I 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.

Can I get all my 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 will happen after CTC payments finish 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.”