The Internal Revenue Service has upgraded an important online tool that will enable eligible families of the expanded child tax credits to update their bank account information so that they can receive their payments promptly each month.
This new and handy feature was added to the Child Tax Credit Update Portal, which is available on IRS.gov. Keep in mind that, according to the agency, any updates made by August 2 will apply to the August 13 payment and all of the remaining payments through 2021.
Take note that families will receive their July 15 payment by direct deposit in the bank account currently on file with the tax agency. For those individuals who aren’t enrolled for direct deposit, they will receive a paper check.
The Child Tax Credit Update Portal gives users other options as well, such as allowing them “if they choose to, unenroll, or opt-out from receiving the monthly payments so they can receive a lump sum when they file their tax return next year,” the IRS says.
“The Update Portal is a key piece among the three new tools now available on IRS.gov to help families understand, register for and monitor these payments. We will be working across the nation with partner groups to share information and help eligible people receive the advance payments,” he added.
Approved under President Joe Biden’s $1.9 trillion American Rescue Plan, the highly anticipated child tax credits will give parents as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen. Broken down further, this equals to a $250 or a $300 payment for each child every month through the end of the year.
Furthermore, eighteen-year-old dependents and full-time college students who are under age twenty-four will make their parents eligible for a one-time $500 payment.
The IRS noted that taxpayers should also be on the lookout for several letters related to the child tax credit.
“In the next few weeks, letters are going to eligible families who filed either a 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov to register for an Economic Impact Payment. The letters will confirm their eligibility, the amount of payments they’ll receive and that the payments begin July 15,” the agency says.
“Families who receive these letters do not need to take any further action. The personalized letters follow up on the Advance Child Tax Credit Outreach Letter, sent in early- and mid-June, to every family who appeared to qualify for the advance payments,” it continues.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.