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Next child tax credit payment to hit bank accounts next week

Business & Money

Idaho Falls —- More money from the Internal Revenue Service will be hitting bank accounts this month due to the child tax credit.

Millions of American families have started receiving monthly child tax credit payments as direct deposits. On July 15, families received the first of six monthly payments.

Payments went to eligible families who filed 2019 or 2020 income tax returns.

“I’m hoping that people are paying attention to their bank accounts because it just automatically started happening. It is going to be fully refundable – any credit that’s leftover. There used to be a partial refund portion of it but now it is going to be fully refundable. It puts more money into taxpayers’ pockets,” said Ryan Tangedal, who is a tax manager at Wipfli.

According to the IRS website, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. Anyone who received a payment last month should also receive a payment each month for the rest of 2021 unless you unenroll.

“Taxpayers can opt-out of that advance if they want to because any money that they take now in the advance, they won’t be able to apply it to that credit in 2021 when they take it on the return,” said Tangedal.

According to the IRS website, to stop advance payments or if you are making changes to your bank information with the Child Tax Credit Update Portal, you must unenroll or make changes 3 days before the first Thursday of next month by 11:59 p.m. Eastern Time. You do not need to unenroll each month. The deadline to update information for the next payment coming up in September is Aug. 30. Click here for more information on how to opt-out.

Payment dates are: July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.

“The child tax credit has been around for a while but previously, it was only $2,000 per dependent and they never paid it upfront like they are going to this year. We have had a few clients call in and have said, ‘Hey the IRS just shot us some money, what’s going on?’ And then we explain there’s this child tax credit that they are doing this year that’s different,” said David Waddoups, a staff accountant at Searle Hart & Associates PLLC in Idaho Falls.

Click here for frequently asked questions on the IRS website.

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