Families receiving monthly Child Tax Credit payments can now update their direct deposit information and more!
Now families can conveniently receive their monthly child tax credit payment online and with a direct deposit to your designated bank account. The account feature was added only to the Child Tax Credit portal available only on IRS.gov. This is good to know, so that any payment update made by Aug. 2 will apply to the Aug. 13 disbursement and all other payments for the rest of 2021.
Before you do anything regarding the Child Tax Credit you should visit the Child Tax Credit Update Portal to confirm your eligibility for the payments. If you are eligible, the tool will also indicate whether you are enrolled to receive payments by direct deposit or not.
Those receiving a Child Tax Credit payment, but who are not enrolled in the direct deposit program will receive a check. The IRS encourages people without current bank account information on file, to use the new tool to update their information to get payments sooner. The IRS is admittedly behind in physical payments and checks could arrive late. Getting your bank account information filled out in the new - easy to use - tool will help you get your payments sooner.
The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:
- $75,000 or less for singles,
- $112,500 or less for heads of household and
- $150,000 or less for married couples filing a joint return and qualified widows and widowers.
The Child Tax Credit Portal
To access the Child Tax Credit Update Portal, a person must first verify their identity. If a person has an existing IRS username or an ID.me account with a verified identity, they can use those accounts to easily sign in. People without an existing account will be asked to verify their identity with a form of photo identification using ID.me, a trusted third party for the IRS. Identity verification is an important safeguard and will protect the user’s account from identity theft.
Anyone who lacks internet access or otherwise cannot use the online tool may unenroll by contacting the IRS at the phone number included in the outreach letter they received from the IRS.
Taxpayers will receive several letters
Taxpayers will also receive several letters related to the Child Tax Credit. The letters will confirm their eligibility, the amount of payments they’ll receive and that the payments begin July 15. Families who receive these letters do not need to take any further action.
The American Rescue Plan raised the maximum Child Tax Credit (CTC) in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children ages 6 through 17. Just for reference, the CTC was worth up to $2,000 per eligible child before 2021.
For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021.