Latest Update With Child Tax Credit
Families now have the opportunity to obtain their Child Tax Credit payment every month by updating their bank account information. This can only be completed through IRS.gov. Online updates can be implemented and people will receive either a direct deposit or check depending on their bank account status. These payments can vary depending on the age of your child. It could go up to $300 per child every month from July to December, which can end up being more than you expect. A few more changes have been made like the increase of credit amount for a 6-17 years old age range. Requirements have also been changed such as credit being completely refundable and having $2,500 earned income is no longer necessary. Additionally, the IRS must pay in advance 50% of the total credit amount. This is due to the American Rescue Plan which will be paid in monthly installments from July and December. Check out this article to learn more.
Warning: If your tax situation changes, like having an increase in income or change in filing status, and you elect for direct deposit on the child tax care credit, you might have to pay the money back to the IRS.
With updating your information, direct deposit can be chosen which provides a quicker and more efficient process. To read more about the Child Tax Credit payments, go to IRS.gov for more in-depth information.
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