Three things to know about advance child tax credit payments
The IRS has sent the first monthly payment of the new child tax credit advance payments to millions of households. While this will mean more money for more families, we know these monthly payments are new and there may be questions. Here are three key things families should know.
1. Payments are scheduled monthly from July through December
The 2021 child tax credit advance payments provide families with half of the child tax credit amount they could receive when they file their taxes next year, putting money into pockets now. The remaining credit will be claimed when they file their taxes next year.
Direct deposits from the IRS will go to the most current bank account that the IRS has on file. For most, this is where their 2020 tax refund was sent. For H&R Block clients who received their most recent refund on the Emerald Card®, the payment should be sent to their card accountDisclaimer number110. Scroll to bottom of page..
Families without a bank account connected to their 2020 or 2019 tax return can expect to receive payments via check, mailed to the address listed on their most recent tax return.
2. Families can find their payment information in the IRS portal
The IRS created a Child Tax Credit Update Portal for families to check if they’re enrolled to receive advance payments, unenroll to stop getting advance payments, or update bank account information for monthly payments starting with the August payment. In the coming months, people will be able to make other updates that affect their payments, including updating personal information like the birth of a child or marital status.
The IRS portal will also show where payments are being sent, the payment method (check or direct deposit), the routing number, and the last four digits of the bank account number. For families that didn’t file a tax return in 2020 or 2019, they can use the portal’s IRS non-filer tool to provide the information needed to set up payments.
If families want to get the credit in full when they file their 2021 taxes, they can use the portal to opt-out of the monthly payments. The deadline to opt out of the next payment is August 2.
3. Help is available for families navigating the advance child tax credit
H&R Block understands the first-time experience of advance payments is creating questions, so we created an online resource at hrblock.com/CTC. Families can use our online calculator to estimate their payment amount and find answers to commonly asked questions about the expanded child tax credit monthly payments. H&R Block customers with questions should call 1-800-472-5625 or direct message @HRBlockAnswers on Twitter.
The IRS also offers a Help Line to unenroll from payments at 800-908-4184.
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With H&R Block's online calculator, families can now estimate how much money they might receive from advance child tax credit payments.