3 quick ways to see if you’re eligible for the July 15 child tax credit payment
The first oneis only a few days away. Now is the time to see if you will receive regular monthly checks so that you can plan to spend (or save) the extra money. Some families can expect as much as $ 3,600 per child over this year and into the next year, but the IRS uses several income and age requirements to determine exactly how much you are. eligible.
Here’s a recap. Parents with incomes of less than $ 150,000 (married and filing jointly) will receive a maximum of $ 300 for each child under 6 and $ 250 for each child aged 6 to 17 in monthly advance payments up to the end of the year. The other half of the money will go into your tax refund in 2022. Families with higher incomes or with older dependents will receive smaller payments.
Read below to see if you qualify for Enhanced Credit and check this out. We can also show you how to use , and explain how they could . We have also gathered details about the and the latest update on a . This story is updated frequently.
1. Look for a letter from the IRS regarding the child tax credit
About 36 million families who might qualify for a child tax credit have received a letter from the IRS. This means it has determined that you may be eligible for the child tax credit based on your 2019 or 2020 federal income tax return. If you generally don’t report taxes, the IRS can use all the information. that you submitted online using the non-filer tool. So yes, even if you haven’t filed your taxes, you can still receive early monthly payments this month.
But it’s only the first letter that warns you that you may be eligible. The IRS plans to send a second letter to confirm eligibility and estimate the amount of child tax credit you could receive (or usefor a quick estimate). As a reminder, the tax credit can go up to $ 3,600 per child under 6 and up to $ 3,000 for each child from 6 to 17 years old. You will receive half of the amount in monthly installments this year and the other half on your tax return. Next year.
You don’t have to do anything if youexcept to keep it in case you need to reference it later. Those who haven’t received the letter, don’t worry yet. Read on for more qualifying tips.
2. Use IRS online portals, tools and eligibility wizard
The IRS hasto help you get child tax credit money. The interactive eligibility wizard is the best way for families to see if they are eligible by simply responding to a . You will need your last tax return to verify your eligibility. But if any information has since changed, you’ll need to use another tool to make sure the IRS has the most recent information.
An online portal, the Child Tax Credit Update Portal, will soon allow you to add new information and correct or update outdated details like the number of children you have or your returned. Right now, you can use it to make decisions about withdrawing advance monthly payments and to add your direct deposit information.
There is also a no-report tool for those who have not filed a tax return for 2020 and are not planning to do so. While there have been reviews that it is not user-friendly, lacks a Spanish version, and does not work well on smartphones, the no-report tool is a way for low-income families to provide information to the IRS to make sure they receive payment.
If the IRS says you’re on hold for eligibility, you won’t start receiving payments until you’ve been approved. You can check the status of your eligibility using the Child Tax Credit Update Eligibility Portal. If the IRS cannot confirm eligibility this year, you will receive the full child tax credit amount when you file your taxes next year.
3. Review the Child Tax Credit Rules and Calculate Your Estimated Amount
Instead of waiting for the IRS to send you a letter, you can make an educated estimate of your qualifying status quite easily. We believe the fastest way is to use our. Just enter your annual income and the number of children. Don’t worry, the calculator is private and anonymous and will not store or use any of your personal information.
For the most part, the calculator tool will tell you what you need to know. However, some aberrant qualifications could arise. For example, in some cases it is possible.
And whilewill generally be eligible for the full amount, which could change if you have of a child. U.S. citizenship also plays a role, so if one of your children is adopted from another country, you’ll want to make sure you know all of the .
To find out more, check here if your, how could you and if you could get a refund for the .