Bank Information Can Now Be Updated on IRS Child Tax Credit Portal
Earlier this month, the IRS added a new feature to its Child Tax Credit Update Portal. This feature allows individuals to update their bank account information to receive monthly advance child tax credit payments. The IRS states that any updates made by August 2nd will be reflected starting August 13th.
The last payment, scheduled for July 15th, will transfer via direct deposit to the taxpayer’s bank account currently on file with the IRS. Individuals who are not enrolled in the direct deposit program will receive a physical check.
This new Child Tax Credit Update Portal on the IRS website lets parents view their eligibility for advance child tax credit payments, see upcoming expected payments, and, if they wish to do so, unenroll from receiving advance payments.
Per the American Rescue Plan Act (ARPA), the IRS must make 2021 periodic advance child tax credit to eligible taxpayers up to the “annual advance amount.” These payments, which equal up to $300 per month per child under age 6 and up to $250 per month per child ages 6-17, will be paid out in equal amounts made no earlier than July 1st, 2021 and no later than December 31st, 2021.
For the tax year of 2021 only, ARPA increased the child tax credit amount up to $3,000 for each qualifying child between the ages of 6 and 17 at the end of the 2021 tax year and $3,600 for each qualifying child under the age of 6 at the end of the 2021 tax year. In addition to this, ARPA also made the child tax credit for 2021 fully refundable if the taxpayer (or their spouse on a joint return) has their primary residence in the United States for more than half of the 2021 tax year.
Follow this link to access the Child Tax Credit Update Portal.
This article was adapted from an article by the Journal of Accountancy. For more information, visit the Journal of Accountancy and the IRS website. If you have questions or need assistance receiving your Child Tax Credit payments, contact us today.
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