Child tax credit FAQ: Payment schedule, opt out deadlines and more

Not sure when to expect your next child tax credit payment? We’ve got you covered.

The first child tax credit payment was sent out July 15 to families that qualify, totaling $15 billion. Eligible families are getting up to $300 each month for each child under age 6, and up to $250 a month for each kid ages 6 to 17 through December. Checks are arriving by direct deposit and in the mail, with the next one coming in mid-August.

Although your first payment may have arrived without any delivery hiccups, you may still have questions about the money — for instance, whether it’s the correct amount. We’ve been covering all the bases to help you figure out if you should opt out of the monthly payment program, how the credit will affect your 2022 taxes and how to manage your information and payment history through the online IRS portals.

Feeling stressed by child tax credit facts and figures? This FAQ should help. We’ve also compiled some information on how parents might want to use the money and how to claim up to $16,000 more for child care costs, much more than you could in previous years. This story is updated on a frequent basis.

When will the next child tax credit check be delivered?
You won’t get all of the child tax credit money this year. You’ll get half of the money in monthly payments, and the rest in 2022 when you file your taxes. Unless you tell the IRS you want to unenroll from the advance monthly payments to get one lump sum next year. The next check will be disbursed on Aug. 13.

So in other words, your largest payment arrives next year — up to $1,800 per child. Until then, you get six smaller payments this year to start using right away. The idea is to bring you money sooner to meet expenses like rent, food and daycare, which is why the checks are “advance payments” this year.

Why should I opt out of the enhanced monthly payments?
Advance payments are optional, and even though the majority of US families are eligible many still don’t qualify. If you’re not sure that you qualify you may need to opt out to avoid repaying the IRS. The next deadline to opt out is Aug. 2, but you can use the IRS Child Tax Credit Update Portal online anytime between now and December to unenroll. You may want to unenroll if you don’t meet income or other eligibility requirements.

To stop advance checks, the IRS says you must unenroll three days before the first Thursday of the following month. See the chart below for deadlines. Once you unenroll in this year’s advance payments, you can’t yet reenroll, though the IRS says it will make a re-enrollment option available later. Also note that for couples who are married and filing jointly, each parent must unenroll separately. It is too late to opt out of the July payment, but you can unenroll for the rest of the monthly payments.   ReadMore

Source : cnet

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