When will your October payment appear? – CBS Tampa

(CBS Detroit) – The fourth payment of the Internal Revenue Service (IRS) Child Tax Credit is due out tomorrow. But many parents want to know when exactly the money will be deposited. Last month’s checks began arriving on the morning of September 15 for those with direct deposit, or shortly thereafter for those who received them in the mail. This month’s payment will be sent on Friday, October 15. Advance payments will continue next month and the following month, thanks to the American Rescue Plan approved in March. While another stimulus check seems unlikely at this time, Democratic lawmakers are looking to extend the child tax credit in advance until 2025.

Families can use the money from the Child Tax Credit however they want. That means the extra $ 250 to $ 300 per child can go toward essentials like food or rent. It can also be spent on school supplies or a new computer, in case COVID pushes students toward remote learning. Other households can use the money for piano lessons, nurseries, or even diapers. Regardless, the money comes at a time when much of the other pandemic relief, most recently additional unemployment insurance, has ended. Knowing that additional income is coming allows some security and flexibility in a world full of surprises.

How much should your check be?

READ MORE: The United States Secretary of Labor visits Atlanta for panel discussions on the gender pay gap and low wages

The IRS pays a total of $ 3,600 per child to parents of children up to five years of age. That comes down to $ 3,000 for every child ages six to 17. Half of the total is paid as six monthly payments and half as a 2021 tax credit. Therefore, each month through December, the parents of a younger child receive $ 300 and the parents of an older child receive $ 250. The The IRS has also made a one-time payment of $ 500 for dependents age 18 or full-time college students up to age 24.

The updated Child Tax Credit is based on the parents’ modified adjusted gross income (AGI), as reflected on their 2020 tax return. (AGI is the sum of wages, interest, dividends, alimony, distributions and other sources of income minus certain deductions, such as student loan interest, alimony payments, and retirement contributions). phase out at a rate of $ 50 for every $ 1,000 of annual income greater than $ 75,000 for an individual and more than $ 150,000 for a married couple. The benefit is fully refundable, which means that it does not depend on the current tax burden of the recipient. Qualifying families receive the full amount, regardless of what they owe in taxes. There is no limit to the number of dependents that can be claimed.

For example, suppose a married couple has a three-year-old son and a seven-year-old son and shows a combined annual income of $ 120,000 on their 2020 taxes. The IRS sends them $ 550 per month. That’s $ 300 per month ($ 3,600 / 12) for the younger child and $ 250 per month ($ 3,000 / 12) for the older child. Those payments will last until December. The couple would then receive the balance of $ 3,300, $ 1,800 ($ 300 X 6) for the youngest son, and $ 1,500 ($ 250 X 6) for the oldest son, as part of their 2021 tax refund.

Parents of a child over one age group are paid the lower amount. That means if a five-year-old turns six in 2021, the parents will receive a total credit of $ 3,000 for the year, not $ 3,600. Similarly, if a 17-year-old turns 18 in 2021, the parents receive $ 500, not $ 3,000.

An increase in income in 2021 to an amount above the threshold of $ 75,000 ($ 150,000) could reduce a household’s Child Tax Credit. The IRS has confirmed that they will soon allow claimants to adjust their income and custody information online, thereby reducing their payments. Failure to do so could increase one’s tax bill or reduce tax refund once 2021 taxes are filed.

Eligibility requires that the dependent be part of the household for at least half of the year and that the taxpayer keep at least half. A taxpayer who earns more than $ 95,000 ($ 170,000), where the Credit is completely eliminated, will not be eligible for the extended credit. But they can still claim the existing credit of $ 2,000 per child.

How are changes made for future payments?

The IRS has three different tools to help recipients and potential recipients update their information on file, register, and verify eligibility.

Child Tax Credit Update Portal

READ MORE: Child Tax Credit: How to Opt Out of Monthly Payments

the Child Tax Credit Update Portal allows users to ensure that they are registered to receive advance payments. It also allows recipients unsubscribe of advance payments in favor of a one-time credit when filing your 2021 taxes. The deadline for the next payment was October 4 (subsequent exclusion deadlines for future payments will occur three days before the first Thursday of the month in which one person will be excluded).

Here are the remaining opt-out terms:

  • Payment date: November 15 / Exclusion deadline: November 1
  • Payment date: December 15 / Exclusion deadline: November 29

The tool also allows users to add or modify direct deposit bank account information, view their payment history, and update their postal address. Other features that come to the portal include changing income and dependents. To access this portal, users need an IRS username or ID.me account. ID.me is a login service used by various government agencies, including the IRS, the Social Security Administration, and the Department of the Treasury, to authenticate users. Users need a valid photo ID to create an account.

Child Tax Credit Non-Filers Registration Tool

the Child Tax Credit Non-Filers Registration Tool is to help parents of children born before 2021 who do not normally file taxes but who qualify for advance payments of the Child Tax Credit. That means parents who have not filed their 2020 taxes are not required to do so and do not plan to do so. (Parents who reported their dependents on their 2019 tax return should not use this tool.)

Users enter their personal information, including their name, postal address, email address, date of birth, relevant social security numbers, bank account information, and identity protection PIN. The IRS uses the information to verify eligibility and, once confirmed, will begin making payments. The IRS and experts advise using the tool on a desktop or laptop rather than a mobile device.

Child Tax Credit Eligibility Assistant

the Child Tax Credit Eligibility Assistant allows parents to verify if they are eligible to receive advance payments of the Child Tax Credit. Users will need a copy of their 2020 tax return or, barring that, their 2019 tax return. It is also fine to estimate income and expenses for the corresponding tax year, although the result may not be accurate. The assistant asks several questions to determine eligibility, but does not request confidential information. No entries are recorded.

MORE NEWS: Northbound lanes on Florida Avenue will be closed Wednesday night

Originally posted on Friday, August 6 at 5:01 PM ET.

.

Leave a Comment

%d bloggers like this: