Taxpayers set to receive the new monthly child tax credit payment now have a way to give the IRS their bank account information to ensure it’s delivered by direct deposit, using an online tool launched Wednesday.
The new tool, located on the IRS website, lets users enter their bank account information that will be used to deliver child tax credit payments of up to $300 per child. The payments would otherwise be sent based on whatever information the IRS has on file from previous tax returns, and by paper check if the agency lacks current bank account information. It’s too late to affect the first round of payments, which go out July 15, but updates made by August 2 will affect those going out August 13 through the end of the year.
Monthly payments are a new feature of the child tax credit, which was increased and overhauled as part of the American Rescue Plan pandemic relief bill. The maximum value of the credit was boosted to $3,600 per child, depending on the child’s age and the income of the family, and half the credit is being delivered as monthly payments starting in July. The remainder will be paid as a refund when taxpayers file their 2021 return. The changes last through the end of the year, although President Joe Biden and other Democrats hope to make them permanent.
The tool is the latest addition to an online portal that gives taxpayers the ability to manage their child tax credit payments. Other features on the website allow users to decline the advance portion of the credit and check their eligibility to receive the credit. Another recently launched tool lets people sign up to get the credit even if they don’t usually file taxes.
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