Exactly two weeks from today, the fifth of six child tax credit payments will be going out to families. The forthcoming checks comprise part of the advance payment of one-half of the tax credit, which families will get the rest of in 2022. The payments will also transfer billions of dollars this month from the federal government to recipient bank accounts.
While we wait to learn if the payments get extended as Democrats want, the IRS has shared an important update. This update involves a potential change affecting the November 15 child tax credit payment.
IRS child tax credit update
On Monday, November 1, the IRS announced the launch of the following new feature. Any family receiving the monthly child tax credit payments can now update their income using the Child Tax Credit Update Portal found at IRS.gov. And on a related note, the IRS also announced Monday that in late November it will launch a new Spanish-language version of that update portal.
“The IRS urges families to enter any significant income changes by midnight on November 1 in order for them to be reflected in their November payment, scheduled for November 15,” the IRS’ announcement reads. “If a family is unable to make the changes on November 1, enter them by November 29 so they are reflected in the December payment.”
After making the update, “the IRS will adjust the remaining payment amounts to ensure people receive the total advance payment for the year.”
The IRS adds the new website feature can help families make sure they’re getting the right child tax credit amounts. It will be especially useful to any family that wants to raise or lower its monthly payments. That’s if their income this year has risen or fallen substantially, for example.
Any family whose income rose substantially in 2021, for example, should consider reducing their payments, the IRS announcement continues. This is especially true if families get the maximum monthly payment now. And if they expect to qualify for less than the full credit when they file their 2021 taxes.
There are also a couple of other important points to note.
- Right now, the sixth and final child tax credit payment will go out on December 15. The Biden White House is pushing to get those monthly checks extended for another year. But that’s not final yet.
- Also, keep a lookout in your mail for an important document from the IRS in early 2022. The tax agency is sending a “Letter 6419” to child tax credit recipients. It will document the advance child tax credit payments issued during 2021. Families will use this letter when preparing their income tax returns in 2022.