Stimulus check update: Three easy ways to see if you qualify for next child tax credit payment

CASH-STRAPPED American families can log into the IRS' online portal or use a free calculator to see if they qualify for the next round of child tax credit payments.

Checks will be sent from August 13 and should arrive in bank accounts just days later.

Families can check the IRS’ Child Tax Credit portal – a tool that allows parents to see if they are eligible, according to CNET.

To check whether they qualify, Americans should click on where it states: "Check your Eligibility."

The IRS needs to process information such as details about your previous tax returns and if you have claimed child tax credit before.

You can use the tool to decide if you want to opt out of receiving the monthly child tax credit payments.

But, this must be done by August 2 ahead of the next round of checks.

The tool allows families to update their information such as adding new dependents.

 The IRS also launched a tool for low-income families that don’t normally file tax returns.

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Eligible households can use the site to give the IRS the information needed - including name, address, and social security numbers.

You can also add your bank account details so the IRS can deposit the cash directly when payments start in a month's time.

Americans don't have to file a tax return if they earn less than $12,200 a year as a single taxpayer or $24,400 as a married couple filing jointly.

Households can also check their eligibility using the tax credit calculator on CNET.

Families are required to enter their adjusted gross income and the number of kids.

It’s important to note that the figure will be a broad estimate of what families will be expected to receive.

Also, the calculator doesn’t store or use Americans’ data.

Around 97 percent of working families are eligible for child tax credits and should’ve received at least one letter from the IRS.

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The first letter from the agency told households if they were eligible for the payments.

Meanwhile, the second letter gave a rough estimate of how much families are expected to receive, according to CNET.

Most taxpayers have previously been able to reduce their federal income tax bill by up to $2,000 per child.

But under the new law, families can get an increased tax break of $3,000 for every child aged six to 17 for the 2021 tax year only.

And you can get $3,600 for every child under the age of six.

Families with newborn babies are eligible to claim the extra cash providing they are US citizens.

Additionally, those with dependents between the ages of 18 and 24 who are enrolled in college full-time can receive $500 for each.

There will be five additional payments this year before the remaining amount is claimed when Americans file their 2021 tax returns.

But families may want to opt-out of receiving monthly child tax credit payments amid fears that they may have to pay some of the money back.

Norman Golden, of Golden Tax, told ABC7: “If you know now that your income is gonna be higher in 2021, and you don't want to have a surprise next year when you file your return and have to pay it back, you may want to consider opting out and just waiting for the credit.”

This is because the child tax credit is an early payment of the estimated cash for 2021.

This means that the money is heavily dependent on 2020 or 2019 income and household size.

Therefore, if either salary or household size has changed in the last two years, some parents could end up owing money when they file tax returns.