What You Should Know As A Family Receiving Payments Through The New Enhanced Child Tax Credit

As of July, millions of American families with children have been receiving monthly checks from the enhanced child tax credit.

That said, there are some important dates that you should be aware of as you are eligible for these tax credits. This is even more important if you want to opt-in or out of receiving funds, you are in the process of moving, or you have a new bank account and want the money moved elsewhere.

The IRS and U.S Department of the Treasury announced the money will arrive on the 15th. The dates are as follows:

  • Sept 15
  • Oct. 15
  • Nov. 15
  • Dec. 15

For families who are eligible for the credit but have not received a check, more than likely they did not file a 2019 or 2020 tax return. They can still register for the benefit through the IRS non-filer sign-up tool.

Using the IRS child tax credit update portal, you can change your bank account information for direct deposit, and your new mailing address, to have this information active for future checks.

Updating your address is very important even if you have the same bank account through direct deposit. The IRS is sending out paper correspondence regarding the credit including Letter 6419 which all families will need for next year to take care of what advance payment they have received.

As a family, you can still opt-out of receiving monthly payments once and for all and only receive the entire credit on their 2021 tax return next year. According to the IRS, in order to have this revision take effect before the next payment, you need to make these revisions at least 3 days before the first Thursday of the month. See Below:

  • Aug. 30 for Sept. 15 payment
  • Oct. 4 for Oct. 15 payment
  • Nov. 1 for Nov. 15 payment
  • Nov. 29 for Dec. 15 payment

As of September, families who unenrolled for advance payments, you can enroll again and get the remaining monthly checks.

Sometime during the fall, families will have the opportunity to make other adjustments that can change the amount of money they receive including the number of qualified children, their marital status, income, and any custody agreements.

These changes will help every family make sure they get the right amount and could save some families from having to pay a percentage of the credit back.

Keep in mind, families that are making over a certain amount should be very careful. This will include those that expect their adjusted gross will be more than $120,000 for those married couples filing jointly, $100,000 for $80,000, those filing as head of the household, filing as an independent, married, or filing separately. The above situations will mean you are not qualified for repayment protection and could end up owing the IRS money.