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Child tax credit update: What if my payment doesn’t come? - NJ.com

Americans are eager for July 15, the date when the IRS will issue the first monthly child tax credit payments from the $1.9 trillion American Rescue Plan.

But if the IRS doesn’t have your correct information, it’s possible you won’t get the payment.

There’s no need to despair, though, as you can still notify the IRS of any changes so you can still get the payments.

Last week, the IRS announced it has updated its Child Tax Credit Update Portal so eligible families expecting the monthly payments from the credit can change their direct deposit information.

The updated bank account information, though, can’t be changed for the first payment, which will be issued July 15, the IRS said. Instead, any updates made by Aug. 2 will apply to the Aug. 13 payment and all subsequent monthly in payments 2021.

“Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS,” the agency said. “Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner.”

Here’s how it works:

  • First, log into the Child Tax Credit Update Portal to confirm your eligibility for the payments.
  • If you are eligible, the tool indicates whether your direct deposit information is on file.
  • If it is, the tool will show you the full bank routing number and the last four digits of the account number. If this isn’t your current bank account, the tool will allow you to make the change, which would be effective for the Aug. 13 payment and beyond.

“They can do that by updating the routing number and account number and indicating whether it is a savings or checking account,” the IRS said. “Note that only one account number is permitted for each recipient — that is, the entire payment must be direct deposited in only one account.”

If the tool doesn’t show you a bank account number, it means you would receive a check. But you can still switch to direct deposit using the tool.

The full child tax credit is $3,600 per child up to age 6, or $300 a month starting July 15, and $3,000 per child ages 6 to 17, or $250 per month. The remaining credit can be claimed on your 2021 tax return.

To be eligible for the full benefit, singles must have adjusted gross income of up to $75,000 and married couples who file a joint tax return must have income up to $150,000. The credit will be calculated based on your 2019 or 2020 tax returns, or based on information that taxpayers entered last year into the IRS’ Non-Filers tool.

People who earn more could get a partial benefit.

If you would rather wait to get the credit when you file your 2021 return, or if you think you may be ineligible because your 2021 income will be higher, you can opt out of the monthly payments.

If the IRS pays you the monthly amounts and you don’t qualify by the time you file your 2021 tax return, you will have to pay the money back. Any repayments could lower your refund amount or it could mean you owe more when your tax return is processed.

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Karin Price Mueller may be reached at KPriceMueller@NJAdvanceMedia.com.

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