Child tax credit: when and where will the December payment be sent?
The sixth – and possibly the last – round of direct child tax credit payments is due out on Wednesday, December 15.
The temporarily enhanced tax credits, included in the $ 1.9 trillion US bailout package enacted by President Joe Biden in March, offer eligible parents up to $ 3,600 per child over the course of a year.
The first half of the credit is sent as monthly payments of up to $ 300 for the remainder of 2021, and the second half can be claimed when parents file their 2021 income tax returns. The first five direct payments were sent on the 15th. July. , August 13, September 15, October 15 and November 15.
December’s payment will be the last unless Congress extends them.
Here’s what you need to know about the December payment.
When will the payments arrive
Families receiving the funds by direct deposit are expected to see the money arrive in their bank accounts on Wednesday, December 15.
Those who receive paper checks in the mail will need to allow additional time for them to arrive, the Internal Revenue Service previously said.
Where the payment will be sent
Parents can use the Child Tax Credit Update Portal to see if they will receive payments by direct deposit or by mail. The portal can also be used to confirm which bank account or address the money will be sent to.
the deadline to modify information via the update portal is passed.
How much will be sent
Families will receive up to $ 300 per child under 6 and up to $ 250 per child 6 to 17.
What to do if you miss a payment
Eligible families who have not received one of the first five payments should check the update portal to ensure they are enrolled in direct payments and that payments are sent to the correct bank account or the correct one. address.
The IRS said it can’t track the payment unless it was:
▪ Five days “since the date of deposit and the bank says it has not received payment”
▪ Four weeks since payment was mailed to a “standard address”.
▪ Six weeks since payment was mailed and there is a forwarding address on file.
▪ Nine weeks since payment was sent to an address outside of the United States.
What to know before tax season
Parents who received monthly child tax credit payments will be required to check that the amount they received matches the amount they are entitled to it when they file their 2021 federal income tax return in 2022.
Families who have received less than the amount they are entitled to will be able to claim a credit for the remaining amount when they file their 2021 income taxes, according to the IRS. Those who received more can be required to reimburse all or part of “overpayment” when they file their taxes.
The IRS said it will send letters to families in January 2022 with the full amount of advance payments received.
Parents may have received more or less than they were eligible for, as eligibility was estimated based on their 2020 or 2019 tax returns. Things may have changed in 2021, which could affect eligibility of a family, including a change in income, a change in reporting status, or a change in the number of eligible children living in the household.
About the child tax credit
The enhanced tax credit offers families a total of $ 3,600 per child under 6 and $ 3,000 per child 6 to 17 years old. Single parents earning up to $ 75,000 per year and couples earning up to $ 150,000 per year are eligible for the full credit. Benefits are then phased out for higher incomes.
The American rescue plan increased the amount of the child tax credit $ 2,000 per child in 2020. It also raised the age limit to 17 and sent out part of the credit for the first time in the form of direct payments.
Could payments be extended?
Democratic lawmakers have proposed extending monthly child tax credit payments by one year as part of the Build Back Better plan, a $ 1.9 trillion spending program. In the present form of the bill, only joint filers earning less than $ 150,000 and heads of households earning less than $ 112,500 would get the direct payments, CNN reported.
The bill was passed by the House in November, but now faces hurdles in the Senate, where it will likely undergo changes before potentially being passed. The IRS has told lawmakers that they expected to pass the bill by December 28 for direct payments to be issued by mid-January, CBS News reported.