TAX TROUBLE Child Tax Credits – Three reasons why you HAVEN’T received $300 payment as next checked set to go out on Friday

TAX TROUBLE Child Tax Credits – Three reasons why you HAVEN’T received $300 payment as next checked set to go out on Friday 


The last reason is perhaps most persistent since these advance monthly payments are based on the most recent filing or unless your 2019 taxes are the latest year of returns.

“Half the total credit amount will be paid in advance monthly payments and you will claim the other half when you file your 2021 income tax return,” according to the Internal Revenue Service (IRS).

It’s very possible that if you filed, the information may be outdated or incomplete. 

Meanwhile, a number of mixed-status families missed out because of an agency glitch.

In a statement, the IRS acknowledged that "some taxpayers who filed tax returns" with immigrant status numbers and mistakenly "did not receive their child tax credit payment for July."

But the agency promised to have corrected the issue.

PLAYING CATCHUP

Also, the IRS has been playing catchup.

The agency reported a fourfold increase in backlog in processing returns compared to 2019. 

This tax season, the agency confirmed there were 35 million tax returns which hadn’t been manually processed, according to the National Taxpayer Advocate, a government watchdog.

CTC SO FAR

Since July 15, the IRS began supplying eligible families with the Child Tax Credit (CTC) worth as much as $300 per month for each child under 6 years old and $250 for each kid between the ages of 6 and 17.

The next date is Aug. 13 and is set to continue through December.

About $15billion of federal funds were “paid to families that include nearly 60 million eligible children” as part of the CTC made possible because of President Joe Biden’s $1.9trillion American Rescue Plan package passed in March.

KEY PORTALS

The publication CNET lays out key portals, starting with creating an ID.me account.

The CTC Update Portal can help confirm eligibility and check payment history.

The latter also lets you update your banking information, specifically if you want to be paid by paper or the more common direct deposit.

Also, it’s here where you can opt for either the monthly payments or a lump sum when filing your 2021 tax return. 

The next deadline to opt-out for the September payment is Aug. 30, CNET confirmed.

If your financial or family status changed for 2021, it’s possible your eligibility did as well. 

EARNED VERSUS RECEIVED

Single filers who earn $75,000 or less, as well as those making $112,500 or less as a head of household or those making $150,000 or less filing jointly, should be entitled to the maximum amount.

Payments begin to dwindle by $50 for every $1,000 of earned income over those three sums.

If you’re welcoming a baby, getting married or your annual income fluctuated - all might affect if you’re qualified or how much you might get paid.

The "change of circumstances portal should allow them to enter their change in marital status and also where the children are," Nina Olson, executive director of the Center for Taxpayer Rights said during an IRS oversight hearing.

One major thing to remember is if you collect the cash but are actually ineligible, those funds would have to be paid back to the IRS next tax season. 

If that’s the case, the best course of action is to be safe and opt-out of advance payments and collect the monies next year, according to CNET.