Families who qualify for the expanded child tax credit payments can expect to see those benefits starting July 15, but they can calculate how much to expect to receive before then. The IRS has announced that prior to sending the first batch of partial monthly payments, it will open two online portals for parents with qualifying dependents. The portals can be used to register (for those who don’t normally file a tax return), to update information like a change in the number of children and to opt out of the monthly payments. We’ll tell you what we know below.
The 2021 advanced child tax credit payments will go out on the 15th of the month, with each check for as much as $300 per dependent or $3,600 in total, based on the age of the child by the end of the year. Parents should be aware of the income limit and other requirements to get the full payment.
What will the IRS’ online child tax credit portals let you do?
Taxpayer families will be able to make changes to any life circumstances since they last filed their taxes, such as an income change and child custody status. For example, if you started making less money this year, you’ll want to update the IRS about those changes so you can get the correct child tax credit amount.
If you had or will have a new baby this year, it’s important to let the IRS know, so you can receive your payment for up to $3,600 for that child. The same applies if you adopted a child or if you gained a new child dependent since you last filed your taxes.
What we still don’t know about the child tax credit portals
There are still plenty of details that are still unclear about the IRS’ child tax credit portals, including:
The exact date the portals will be available to families.
How the portals will work for families updating their information.
How families will differentiate between the two portals.
The process for opting out of the monthly payments.
My Thoughts about this
1. I am pretty sure, divorce parents should opt out if they share joint custody and have a agreement to claim the child every other year. They should do this to avoid potential issues when they file there 2021 taxes.
2. This might cause you to owe taxes, You might need to adjust your withholding (W-4) correctly so you don’t owe if you claim the advance on your taxes.
- Remember, this is a advance NOT a stimulus payment.
Edit: We have figured it out, If you have 2 children decrease the amount on Line 3 by $1300 on your W-4.
My Last Post regarding this: www.reddit.com/r/personalfinance/comments/nel69s/irs_treasury_announce_families_of_88_percent_of/?utm_source=share&amp;amp;utm_medium=ios_app&amp;amp;utm_name=iossmf