TWO lots of child tax credit installments have been sent out so far – but here’s what to do if you have received the wrong amount of money in July and August.
The expanded child tax credits are worth up to $3,600 for each child, and are automatically issued as monthly payments worth up to $300.
The first advance payments landed on July 15 and August 13, with the rest set to go out on September 15, October 15, November 15 and December 15, unless you choose to opt out.
The other half – worth up to $1,800 per child – is given as a lump sum next year after you’ve filed your tax return.
But some Americans received the wrong amount in July and August.
If you didn’t receive the amount you expected, you’ll want to quickly verify your eligibility through the IRS Eligibility Assistant.
The main reason why parents are getting the wrong payments appears to be that their adjusted gross income or number of children has changed between tax seasons, and the IRS hasn’t yet adjusted for the difference, CNET reports.
Parents of children under six can receive up to $300 per month or $250 for children aged from six to 17 – but those amounts phase out for higher earners.
For example, if your income was significantly higher or you didn’t claim a dependent on your 2020 tax return, you might get a lower amount than you should this year based on the prior figures.
Also, if your family didn’t get a July payment, but your first arrived in August, the total advance credit will be divided over five months instead of six months, resulting in larger monthly payments.
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You could also receive a potential overpayment if your income went up this year, meaning the IRS is sending you too much money based on old information.
The IRS said you should be able to sign in to the Update Portal to make the appropriate adjustments at some point in September.
How to track the payments
Also, to ensure you receive your tax credit in the first place, make sure to double-check the information the IRS has.
It’s important to check that there are no errors, including in your account information and routing numbers.
The IRS also has a free online portal to help you track your cash – similar to how to do it for stimulus checks and tax refunds.
You can use it to see your processed monthly payment history.
It’s a handy way to track payments that haven’t hit your bank account yet but should have.
To check on your payments online, you’ll need to register with your IRS username and ID.me account information.
If you haven’t used it before, you’ll need to register using a photo ID.
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