One federal stimulus check that is still continuing is the expanded child tax credit. Now, the IRS has come up with a very important coronavirus stimulus check announcement regarding the CTC payment and every CTC recipient should find out if it will affect them.
Joe Biden’s American Rescue Plan Act, which was signed into law in March this year, came up with the expanded child tax credit program. The program offers CTC payments in two tranches, the first half in six monthly installments from July to December 2021, and the other half, in one lump-sum payment after the recipients’ file taxes next year.
The total credit available is up to $3,600 per child below six years and $3,000 per child from six to 17 years. So, the monthly installments could be worth up to $300 and $250, respectively.
Since their start in July, these payments have been going out timely, and over the past few months, the agency has come up with several updates and announcements for the CTC payment. On Oct. 29, the agency came up with another announcement, informing recipients that they can now make crucial changes to their monthly Child Tax Credit payments.
What makes this announcement special is that the agency has given the taxpayers just one day to make the relevant changes. As per the agency, the Child Tax Credit Update portal will have a new tool that would allow taxpayers to make the changes. This tool, however, will remain active for just one day, i.e. Nov. 1, 2021 (until midnight).
Making changes on Nov. 1 will impact your November and December CTC payments, as well as the payment next year. In case you fail to make the changes, you would continue to get the CTC payment on the basis of your existing details the agency has on you unless you make the changes on the next deadline.
What Changes Can You Make To The CTC Payment?
In its announcement, the IRS informed that the new tool would allow families to make changes to their income. So, if your family income dropped, then you may be eligible to receive more credit money. In some cases, your credit amount may drop.
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“In many, but not all, cases a big income swing can either raise or lower a family's monthly payments. Normally, this means that small changes in income will not impact the payment amount and need not be entered into the CTC UP,” the IRS said in a press release.
Along with the number of kids you have, your CTC payment is also dependent on your family income. For instance, single filers with AGI of $75,000 or less (the limit for married couples filing jointly is less than $150,000) qualify for the full amount. The payment phases out for those with an adjusted gross income of $95,000 and $170,000.
Along with income changes, the tool also allows taxpayers to switch from paper checks to direct deposit, change their address and bank account details, as well as opt out from getting monthly payments.