5 youngster tax credit score cost issues we can assist you remedy

5 child tax credit payment problems we can help you solve

Incorrect funds is perhaps on account of outdated IRS data. 

Sarah Tew/CNET

No signal of your youngster tax credit score cost but? Hundreds of thousands of eligible households obtained their checks robotically final week with out issue, however some eligible dad and mom are nonetheless ready. Even people who obtained the primary two funds with no downside are lacking this month’s examine and there aren’t many updates proper now. The IRS is conscious of the issue and posted this tweet that it is trying into September’s cost hiccup.

It isn’t simple to get in contact with the IRS for assist with cost issues, however there are a number of steps you’ll be able to take now whereas ready for an replace. Begin by double-checking your data within the IRS Replace Portal. You might also must examine your eligibility to be sure you qualify. If every little thing provides up, there are a number of different methods to get clues of the place your cash is (extra beneath). 

If a cost was by no means issued in any respect, it is perhaps on account of inaccurate or outdated data out of your 2020 tax return, or that the IRS does not know your loved ones qualifies. We’ll clarify what you are able to do now to examine the standing of your funds and different issues that folks are having. Plus, this is the most recent on the youngster tax credit score presumably being prolonged till 2025. And if you want to decide out, listed here are the unenrollment deadlines to remember. This story was just lately up to date. 

My youngster tax credit score funds have not been processed but

There are a selection of attainable the reason why your loved ones hasn’t obtained a July, August or September cost. 

  • Your loved ones by no means filed a 2019 or 2020 tax return, so the IRS does not know that you simply qualify. If that is the case, use the nonfiler signup software on-line to register for funds (the final day to enroll is Oct. 15). 
  • You lived within the US lower than half the yr in 2019 or 2020, and the IRS does not assume you qualify, even in the event you now have a main residence within the US.
  • Your new child or adopted dependent grew to become a part of your family after you filed your 2020 tax return, and you have not been capable of replace these particulars within the IRS portal but (the choice so as to add dependents ought to be obtainable quickly).
  • Your family’s circumstances in 2020 disqualified you, regardless that your state of affairs has now modified in 2021. This might be the case in case your revenue was beforehand too excessive or if there was a shift in a custody association.
  • You already unenrolled from this yr’s advance month-to-month funds utilizing the IRS Replace Portal. If that is the case, your loved ones will obtain the credit score whenever you file your taxes in 2022. In case you determine to reenroll within the month-to-month cost program, you’ll achieve this later this month.
  • You’ve a mixed-status family utilizing an Particular person Taxpayer Identification Quantity (or the place one mother or father is an immigrant and the kid has a Social Safety quantity). Due to an IRS mishap, these households could not have obtained their first July cost, however ought to have certified for adjusted quantities in August and September. 
  • Your cost was despatched by mail and it is nonetheless held up by the US Postal Service. On account of a technical concern in August, hundreds of thousands of households obtained their checks by snail mail as a substitute of direct deposit. Whereas the IRS appears to have fastened the issue for the September cost, some dad and mom are nonetheless reporting late checks. 

Causes you have not obtained a toddler tax credit score cost

The issue What to do
You did not file a 2019 or 2020 tax return Use the IRS nonfiler portal to register
Your cost is coming within the mail Give it time to reach, because it may take weeks
You unenrolled from advance month-to-month funds Reenroll in late September by means of the Replace Portal
Your financial institution information or mailing deal with is flawed Change your particulars within the Replace Portal now
Your revenue or variety of youngsters has modified Replace your particulars when that choice is made obtainable
You possibly can’t discover any purpose why you did not get a cost It could be time to file a cost hint with the IRS

I doin’t know how you can examine my cost standing on-line

The simplest solution to see what’s occurring along with your earlier checks is to log in to the IRS Replace Portal to view your cost historical past. To make use of it to handle your whole advance funds, you will must first create an ID.me account.

If the portal says your cost is coming by mail, give it a number of enterprise days (or extra) to reach. You probably have direct deposit arrange, make certain all the knowledge is correct. If you have not arrange your banking particulars but, or if the checking account on file with the IRS has closed or is now not legitimate, you must count on all additional funds to come back as paper checks.

In case your cost historical past within the portal says that the cash was despatched by direct deposit, examine your checking account once more within the subsequent few days to verify it is cleared. In keeping with the White Home web site, transactions will present the corporate identify “IRS TREAS 310” with an outline of “CHILDCTC” and an quantity for as much as $300 per child (except there’s been an adjustment on account of a lacking cost). Do not get this sediment confused with these for stimulus checks, which present up as “TAXEIP3” when deposited. Additionally, in the event you’re ready on a tax refund, it’s going to present up as “TAX REF.”

In case you’ve verified your eligibility, and your account says that your funds had been issued however they’re nonetheless lacking, you might must file a cost hint with the IRS. To do this, you will want to finish Kind 3911 (PDF) and mail or fax it to the IRS. Solely do that if it has been a minimum of 5 days for the reason that scheduled deposit date, or 4 weeks for the reason that cost was mailed by examine. We clarify how you can file a hint right here.

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I’m not eligible for a check, but I still got one 

With the IRS sending out millions of child tax credit payments, along with keeping up with income tax refunds and unemployment tax refunds, it’s certainly possible the agency could have made a mistake and sent you a check even if you don’t qualify. For instance, some people who weren’t qualified for stimulus checks still received payments. It could also be that your family qualified in prior years but will not qualify when they file their 2021 tax return in 2022. 

If you’re absolutely positive you’re not eligible for this year’s enhanced child tax credit payments but you got a payment, you’ll need to return that money to the IRS. Start by using the Update Portal to unenroll from future payments — the next deadline is Oct. 4., 11:59 pm ET. This will help you avoid having to pay back more money when you file taxes in 2022

Keep in mind that both parents need to unenroll separately. If your spouse unenrolls and you don’t, you’ll get half of the joint payment you were supposed to receive with your spouse.

My child tax credit check amount is inaccurate

There are a couple of reasons why families are reporting inaccurate payment amounts. First, you’ll want to quickly verify your eligibility through the Eligibility Assistant. Then we suggest using CNET’s child tax credit calculator to see how much you should be receiving based on your income and the ages of your dependents.

The primary reason why parents are getting inaccurate payment amounts seems to be that their adjusted gross income or number (or ages) of children has changed between the 2020 and 2021 tax seasons, and the IRS hasn’t yet adjusted for the difference. An additional complication is that there’s currently no way to inform the IRS of those household changes. The tax agency says it will eventually add more functionality to the Update Portal to allow parents to add or subtract qualifying children, or report a change in marital status or income. 

Also, parents of children younger than age 6 can receive up to $300 per month or $250 for children aged 6 to 17, but those amounts phase out for higher earners. So, if your income was significantly higher last year or you didn’t claim a dependent on your 2020 tax return, you might get less of the credit than you should this year based on the prior figures that the IRS has on file.

If your family didn’t get a July or August payment but your first monthly advance check did come in September, your total advance credit will be divided over four months instead of six months. That will result in larger advance monthly payments: up to $450 per month for each child under age 6 and up to $375 per month for each child ages 6 through 17, according to the IRS.

Some parents may also see an incorrect (higher) payment amount in the Update Portal due to having a closed or invalid bank account on file. According to the IRS (question G12 on that page), if the agency has to reissue a payment as a paper check after a failed attempt at direct deposit, the total amount that appears in the payments processed section of the portal may be double, even if your family received the correct amount by mail. The IRS is currently working to fix this error. 

I got an overpayment and I’m worried about having to repay the IRS

If you’re eligible for the full amount of child tax credit money, you won’t have to pay it back. Child tax credit payments do not count as income. However, if you no longer qualify for the full amount but you receive the full amount anyway, you may need to pay back that extra money.

An overpayment from the IRS may occur if your income went up this year (meaning you’re getting too much money based on old tax info) or if your child is aging out of a payment bracket this year (meaning the IRS is determining amounts for a 5-year-old instead of your 6-year-old). The age brackets for dependents apply to how old your child will be at the end of this calendar year. The IRS says you should be able to sign in to the Update Portal to make these kinds of adjustments to your child tax credit account sometime this month.

The agency is using what it calls “repayment protection” so if you do receive an overpayment but fall below a set income level, you don’t have to pay the money back. Above that income level, you will have to pay back some or all of the extra money. Here’s more on taxes and how repayment protection works.


The next deadline to opt out of the remaining monthly child tax credit payments is Oct. 4. 

Sarah Tew/CNET

Will the enhanced child tax credit be extended beyond 2022? 

As of right now, the increased payments are temporary, just for the 2021 tax year. That means after you get your final payment with your tax refund in 2022, the child tax credit could revert back to its original amount from previous years. 

However, it’s possible Washington could extend the payments or make this year’s changes permanent. Those changes increased the credit from $2,000 to $3,000, made the credit $3,600 for children under age 6 and let families qualify if they have little or no income. 

In a $3.5 trillion plan released on Sept. 10 to provide tax breaks for families and renewable energy producers, House Democrats proposed extending the child tax credit through 2025 and keeping it nonrefundable so that low-income households can collect the maximum amount even if they don’t owe taxes. On Sept. 15, some 450 economists signed an open letter to congressional leaders calling to extend the child tax credit, noting that it could “dramatically improve the lives of millions of children” and help reduce poverty. 

The Senate is drafting the next budget bill, and lawmakers still need to reach an agreement. We’ll continue to update this story as we find out more. 

Here’s how to opt out of advance payments and how to track down your child tax credit payment if you didn’t receive it. Not sure you got the right amount? Use CNET’s child tax credit calculator to see how much you should get.

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