ir-2021-169, August 13, 2021
washington – the internal revenue service and treasury department announced today that millions of american families are now receiving their child tax credit (ctc) advance payment for the month of august as direct deposits begin to count in bank accounts and checks arrive in mailboxes. .
This second batch of monthly advance payments, worth approximately $15 billion, is reaching nearly 36 million families across the country. most will be issued via direct deposit.
Under the US bailout plan, most eligible families received their first payment on July 15 and payments will continue each month for the remainder of 2021. For these families, each payment is up to $300 per month for each child under 6 years old and up to $250 per month for each child 6 to 17 years old.
In addition to the payments on July 15 and August 13, the payment dates are September 15, October 15, November 15 and December 15.
here are more details about these payments:
- Families will see direct deposit payments in their accounts beginning today, August 13. just like the first payments, the vast majority of families will receive these payments by direct deposit.
- the irs wants to alert some recipients who received direct deposits in july that they will receive their august payments in the mail. Due to an issue that is expected to be resolved with the September payments, a percentage of these payees (less than 15%) who received direct deposit payments in July will receive paper checks for the August payment. For those affected, no additional action is necessary for the September payment to be issued via direct deposit. Families can visit the Child Tax Credit Update Portal to see if they are receiving a direct deposit or a paper check this month.
- For those who receive their payments by paper check, be sure to stop additional time for delivery before the mail until the end of August. Those who want to receive future payments by direct deposit can make this change using the Child Tax Credit Update Portal, available only on irs.gov. To access the portal or for a new step-by-step guide to using it, visit irs.gov/childtaxcredit2021. a change made at 11:59 p.m. m. and the Aug. 30 will apply beginning with the September payment.
- Payments went to eligible families who filed a 2019 or 2020 income tax return. Returns processed through August 2 are reflected in these payments. This includes people who do not normally file a return but who successfully registered for Economic Impact Payments using the IRS Non-Filer Tool on irs.gov in 2020 or successfully used the Non-Filer Registration Tool in 2021 for advanced ctc, also available only on irs.gov.
- payments are automatic. In addition to filing a tax return, including a simplified return from the Non-Filer Registration Tool, families do not have to do anything if they are eligible to receive monthly payments. the non-taxpayer registration tool is available through October 15, 2021.
- families who missed a July payment and receive their first monthly payment in August will continue to receive their full advance payment for the year . this means that the total payment will be spread over five months, instead of six, making each monthly payment larger. for these families, each payment is up to $360 per month for each child under age 6 and up to $300 per month for each child age 6-17
- also, the irs is correcting a problem related to the advance ctc payments for families where the parents have an individual taxpayer identification number (itin) and the qualifying children have a social security number. those families who did not receive the July payment are receiving a monthly payment in August, which also includes a portion of the July payment. they will receive the rest of the payment from July to the end of August.
low-income families can still enroll
It’s not too late for low-income families to sign up for CTC advance payments. The IRS urged anyone who is not normally required to file a tax return to explore the tools available on irs.gov. These tools can help determine eligibility for the anticipated CTC or help individuals file a simplified tax return to enroll in these payments, as well as the Economic Impact Payments and Recovery Refund Credit. people can get these benefits even if they don’t work and even if they don’t have any income.
the irs continues to raise awareness about the expanded child tax credit. The IRS encourages partners and community groups to share information and use the tools and toolkits available online to help non-filers, low-income families, and other underserved groups sign up for Advance Child Tax Credits. as well as economic impact payments. Individuals can check their eligibility for advance payments using the new Advance Child Tax Credit Eligibility Wizard.
families can stop payments at any time
Families can stop payments at any time, even after payments begin. they do this by using the opt-out feature on the child tax credit update portal. eligible families who choose this option will continue to receive the rest of their child tax credit as a lump sum when they file their 2021 federal income tax return next year. to stop all payments beginning in September and the rest of 2021, you must unsubscribe by 11:59 p.m. m. et on August 30, 2021.
For married couples, each spouse must disenroll separately. if they each choose to opt out, she will not receive monthly payments. if only one spouse drops out, they will continue to receive monthly payments, but they will be half the normal amount.
The disenroll feature can also be helpful for any family who no longer qualifies for CTC or believes they will not qualify when they file their 2021 return. This could happen if, for example, someone else, such as a former spouse or other family member, you qualify to claim your child or children as dependents in 2021.
Links to these tools, a step-by-step guide to using the non-taxpayer registration tool, answers to frequently asked questions, and other helpful resources are available on the tax agency’s special CTC 2021 advance page. it’s at irs.gov/childtaxcredit2021.