Do you have a child tax credit payment problem? Here’s what you need to know

The first monthly payment of the child tax credit went to almost 35 million eligible families last week, the majority having been sent as direct deposits. If you’re expecting a paper check, it should be arriving in the mail soon. However, this round of payments has already encountered a few bumps, and some parents are reporting issues and confusion with the program.

The second payment is scheduled for August 13 – you can make sure you get the correct payment amount depending on your income and the number of dependents. Using the IRS Portals, you still have time to correct mistakes that could stunt your money. Plus, it’s not too late to unsubscribe from monthly checks if you’re worried about an overpayment that could owe money to the IRS Next year.

We’ll help you answer some of your child tax credit questions below. In the meantime, the IRS has tried to make it easier for parents to verify the status of their payments. If you want to use the Update Portal to manage your payments, you may need to create an ID.me account if you haven’t already. We will update this story regularly.

I am entitled to the child tax credit. Why haven’t I received payment yet?

If you are eligible for enhanced credit but have not received your payment, it could be for several reasons. Did you file a tax return in 2019 or 2020? Otherwise, the IRS may not have the most recent information, especially if you had a child during that time. You can use the IRS Non-Filer Portal to sign up for future payments.

If you filed your taxes, check the update portal to see if your payment is arriving in the mail. If so, give it several days as it might take a little longer to arrive. If you have set up a direct deposit, make sure all of the information is correct. Note that if you haven’t set up your bank details by June 28, you should expect to receive a paper check for the July payment.

If everything looks okay but you still haven’t received payment, you may need to file a payment record with the IRS. To do this, you will need to complete Form 3911 and send it to the IRS. Do this only if at least five days have passed since the scheduled deposit date or four weeks since payment was sent by check.

The portal says I am not eligible, but I have received payment. What should I do?

With the IRS sending millions of child tax credit payments, along with tracking income tax refunds and unemployment tax refund, it is certainly possible that the agency made a mistake. For example, some people who did not qualify for stimulus checks still received a payment.

If you are absolutely certain that you do not qualify for the enhanced child tax credit payments but have still received a payment, you will need to return that money to the IRS. Start by using the IRS Update Portal to unsubscribe from future payments – the deadline for withdrawing from the next payment is August 2nd. This will save you from having to pay back more money when you declare your taxes in 2022.

On the other hand, some members of a Reddit forum report that despite the child tax credit portal showing that they are not eligible, that they meet the conditions and that they have received their first payment. We contacted the IRS for more details on this situation.

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Child tax credit: everything we know

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How do I know if a bank deposit is for the payment of the child tax credit?

In addition to the IRS portal showing that your payment has been issued, you can verify your bank account for deposit. According to the White House website, the transactions will contain the company name “IRS TREAS 310” with a description of “CHILDCTC” and an amount of up to $ 300 per child. Do not confuse this deposit with the dunning checks, which appear as “TAXEIP3” when deposited. In addition, if you are expecting a tax refund, it will be displayed as “TAX REF. “

Will I ever have to repay the child tax credit?

It depends. If you qualify for the full amount of the child tax credit, you will not have to repay it. However, if you are not eligible for the full amount due to a change in your income or the number of dependents, but you still receive the full amount, you may need to repay this additional money.

The IRS uses what it calls “payment protection,” so if you receive an overpayment but fall below a set income level, you don’t have to pay off an overpayment. Above this income level, you will have to repay some or all of the extra money. Learn more about income levels and how payment protection works.

Will these enhanced child tax credit payments continue next year?

From now on, the subsidized payments for this tax year. This means that after you receive your final payment along with your tax refund in 2022, the child tax credit will revert to its original amount. However, it’s possible that President Joe Biden and Congress will come to an agreement to extend the payments into 2025 – or make the changes permanent. Last week, Biden said he urges Congress to do so: “I say to my fellow Congressmen: This tax cut for working families is something we should extend, not end, next year.

While no decision has yet been made, we will keep you posted on the results.

For more information, here is how to withdraw future child tax credit payments. Also, here’s how track your child tax credit payment if you haven’t received it. Not sure you have the right amount? Use CNET Child Tax Credit Calculator to see how much you should get.