Child tax credit payments set to begin in July
SOUTH BEND, Ind. -- The IRS shared an update Wednesday on when you can expect your child tax credits. The agency expects to begin issuing monthly payments along with the launch of a new tax credit portal starting July 1st.
These advance payments will run from July through December and is something single dad James Curry says is much needed.
“It’s good to have something month to month to help you out I think that’ll help her out better," said Curry.
The credit is now being split between 2021 and 2022 will allow parents to get the advance monthly payments of as much as $300 per child. The remainder would then be claimed as part of next year’s tax return. The enhanced portion of the credit will be available for single parents with annual incomes up to $75,000 and joint filers making up to $150,000 a year.
“The concern with that is people are going to expect to get the full amount when they file and the refund may be a little bit lower. They don’t realize they claimed half of it during the year," said Jared Weidner, Certified Public Accountant.
The IRS will launch a new child tax credit portal by July which would allow any new parents to update their information in order to qualify for the tax payout.
“So let’s say you had a life event you had a child that was born in 2021 and they didn’t have that on record for 2020 then you can go in and update that," said Weidner.
Weidner says that while he expects this to be a short term benefit for many parents it would provide some relief for those still struggling to get back on their feet.
“Everyone has been kind of struggling right now so any little helps at all," said Curry.
Parents can choose to opt into the monthly payments or opt out and receive one lump sum next spring.
To see how much you could expect to receive, personal finance website Grow created a calculator that factors in your filing status, annual income and the number of dependents you have.