Child Tax Credit payments

In our previous newsletter, 9 Questions Taxpayers May Have About the Expansion of the Child Tax Credit, we mentioned we would update you on any future developments in this area.  We are reaching out again to inform you that the IRS has recently unveiled a portal to help families manage the Advanced Child Tax Credit payments.

The Child Tax Credit Update Portal allows you to check your eligibility for these payments and also offers the ability to unenroll or opt out from receiving the monthly payments. 

Individuals in the following situations may want to consider unenrolling:

  • Taxpayers whose income in 2021 will be too high to qualify for the credit.
  • Someone else will claim the qualifying dependent in 2021.
  • The taxpayer’s main home was out of the US for more than half of 2021.

When entering the Child Tax Credit Update Portal, you will be required to register with the IRS using an ID.me account.  The registration with ID.me can be completed on your cell phone or computer.   If the most recent tax return you filed was a joint tax return, you and your spouse will both need to separately unenroll.  If your spouse does not unenroll, he or she will receive payments for his or her portion of the advanced Child Tax Credit.  A valid picture (front and back) of a driver’s license, state-issued ID, government-issued ID, or US Passport is required to be uploaded to the ID.me website to complete your registration and log into the portal. 

Early in July, the portal will allow taxpayers to update their bank account information for payments starting in August.  The IRS is also planning to provide taxpayers the ability to update their mailing address by late August and has indicated continued portal improvements allowing for changes to family status and changes in income should be available by end of summer or early fall. 

Individuals that do not normally file an income tax return can register with the IRS for the Child Tax Credit using the new Non-filer Sign-up Tool.

If you have any questions regarding the new tools to help families manage Child Tax Credit payments, please reach out to our Tax Team with questions!

This article was written by Kendra Moran, Shareholder and CPA in our Billings office location.

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