What to know if you didn’t get the first child tax credit payment
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This week, millions of American families have started to receive the monthly child tax credit payments. It’s part of the American Rescue Plan, which enhanced the child tax credit. The expansion increased the amount of the credit, raised the age requirement to include 17-year-old children and implemented the option to receive monthly payments in advance. CPA Kemberley Washington explains what to do if you qualify for the payments, but still have not received the first one, or received an incorrect amount. What is the first thing people should do if they have not received their payment – just yet?Check the IRS child tax credit update portal first. You can do this by going to the Child Tax Credit Update Portal on the IRS’ website. This portal will let you know whether your payment has been processed. You can also see a listing of your payments and unenroll from the monthly payments if you desire to do so. Lastly, this portal can also provide information regarding whether you are eligible for the payments. 2. What should a person do if they receive an incorrect amount? Keep in mind, the IRS will use your 2019 or 2020 tax return information to determine if you qualify. If you are someone who is not required to file a tax return, the IRS will use tax information you use in the non-filer tool.If your income has declined or your tax situation has changed in 2021, you can actually update your information in the Child Tax Credit Portal. A great example would be one of the following: Someone who had a baby in 2021 A person whose income is a lot lower in 2021 compared to prior years A person did not claim a qualifying child in a prior year3. What happens if your banking account information has changed during the year or the IRS does not have your information on file, what should a person do?Keep in mind, the IRS will use your previous tax returns or information you entered in the non-filer tool to determine how to send your payment. If the IRS does not have your bank account information, it will mail your check to your address on file. You can update your banking information through the child tax credit update portal also. 4. What can someone do if the child tax credit portal shows a payment has been disbursed but you still have not received the payment? You can request a payment trace, which is a tool to find missing payments or refunds with the IRS if you have not received your child tax credit payment. You must complete Form 3911, Taxpayer Statement Regarding Refund to start your payment trace. Here is when you can start a payment trace with the IRS: 5 days since the expected deposit date and your bank has not credit your account 4 weeks since the IRS mailed to your address 6 weeks since the IRS mailed to a forwarding address on file 9 weeks since the IRS mailed to a foreign addressIf you need more information, check out Kemberley Washington’s twitter @kemcents.
This week, millions of American families have started to receive the monthly child tax credit payments. It’s part of the American Rescue Plan, which enhanced the child tax credit. The expansion increased the amount of the credit, raised the age requirement to include 17-year-old children and implemented the option to receive monthly payments in advance.
CPA Kemberley Washington explains what to do if you qualify for the payments, but still have not received the first one, or received an incorrect amount.
- What is the first thing people should do if they have not received their payment – just yet?
Check the IRS child tax credit update portal first. You can do this by going to the Child Tax Credit Update Portal on the IRS’ website.
This portal will let you know whether your payment has been processed. You can also see a listing of your payments and unenroll from the monthly payments if you desire to do so. Lastly, this portal can also provide information regarding whether you are eligible for the payments.
2. What should a person do if they receive an incorrect amount?
Keep in mind, the IRS will use your 2019 or 2020 tax return information to determine if you qualify. If you are someone who is not required to file a tax return, the IRS will use tax information you use in the non-filer tool.
If your income has declined or your tax situation has changed in 2021, you can actually update your information in the Child Tax Credit Portal. A great example would be one of the following:
- Someone who had a baby in 2021
- A person whose income is a lot lower in 2021 compared to prior years
- A person did not claim a qualifying child in a prior year
3. What happens if your banking account information has changed during the year or the IRS does not have your information on file, what should a person do?
Keep in mind, the IRS will use your previous tax returns or information you entered in the non-filer tool to determine how to send your payment. If the IRS does not have your bank account information, it will mail your check to your address on file. You can update your banking information through the child tax credit update portal also.
4. What can someone do if the child tax credit portal shows a payment has been disbursed but you still have not received the payment?
You can request a payment trace, which is a tool to find missing payments or refunds with the IRS if you have not received your child tax credit payment. You must complete Form 3911, Taxpayer Statement Regarding Refund to start your payment trace.
Here is when you can start a payment trace with the IRS:
- 5 days since the expected deposit date and your bank has not credit your account
- 4 weeks since the IRS mailed to your address
- 6 weeks since the IRS mailed to a forwarding address on file
- 9 weeks since the IRS mailed to a foreign address
If you need more information, check out Kemberley Washington’s twitter @kemcents.
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