Starting on July 15, monthly payments will start rolling out to millions of American families under the expanded child tax credit. If you’re having or adopting a baby in 2021, don’t worry — new parents are also eligible to receive the money offered.
See: Two IRS Portals Are Being Created to Help You Get Your Child Tax Credit MoneyFind:It’s Almost Child Tax Credit Time — Are You Eligible?
Although eligibility is based on your 2020 or 2019 tax returns, the IRS opened online portals in early July for registering for to the child tax credit. If you are a new parent you will need to update your number of dependents via the portals to receive the $300 monthly payments. The money will be deposited from July to December for children under 6 years of age, if the household income is within the plan thresholds.
See: Child Tax Credit Payment Schedule Is Out Now – Here’s When You’ll Get Your MoneyFind: How to Avoid Paying Back the Child Tax Credit
Updating information on the portals will also be important for parents who have already filed last year’s taxes, but might have had other significant changes happen in 2020. For example, if you experienced a decrease in income as a result of the pandemic, while your 2020 income might have been too high to qualify for the tax credit, you may now fall within the income limits. If you do not update this on the portal, the IRS won’t know to send the monies now owed to you.
In addition, the portals can be used to opt out of the credit. You would do this if your income increased so as not to owe the IRS money when you file 2021 taxes.
More From GOBankingRates
- Housing Breaks That Are Available to Military Members and Their Families
- Everything You Need To Know About Taxes This Year
- 4 Tips for Saving Money While in the Military
- Big Personal Goals That You Should Put Your Money Toward