THE IRS has launched a new tool for parents to update their mailing address in order to receive Child Tax Credits.
The new feature, announced on Friday, allows families to update their location to "avoid mailing delays or even having a check returned as undeliverable."
"Any family can easily have their September check and all future checks sent to their new address by using the portal to make an address change request," the IRS stated online.
Families have until midnight on August 30 to update their address in order for the change to take effect for the September Child Tax Credit.
Read our Child Tax Credit live blog below for the latest news and updates…
- Cybele Mayes-Osterman
WATCH OUT FOR TAX CREDIT SCAMMERS
Those eligible to receive the tax credit are being targeted "using phone calls, emails, text messages, through social media.”
The IRS has been warning taxpayers of these scams since July when the $300 tax credit started.
“Thousands" of text messages and emails are sent out every day hoping "they'll get people to respond and fall prey to their scam,” IRS Criminal Investigations claim.
The IRS says they will never ask you for money "using a gift card or wire transfer or painting via a cryptocurrency."
- Cybele Mayes-Osterman
AMERICANS FURIOUS AT LATE PAYMENTS
Some Americans are livid as they are still waiting to receive their checks.
One person wrote on Twitter, “Can somebody tell me why I ain’t get a child tax credit? Or my taxes.”
Another wrote, “Where [the f**k] is my child tax credit.”
“Please explain why I received my child tax credit through Direct Deposit last month, then all of a sudden they have took it upon yourself to change my payment to mail???? I have rent due!” someone else pleaded.
“@USAGov WHERE IS MY CHILD TAX CREDIT I HATE YOU PEOPLE SOOO MUCH," another wrote.
- Cybele Mayes-Osterman
IRS AIMS TO GIVE FAMILIES A BOOST
The IRS has been on an educating blitz to help those families help themselves to a many millions of dollars of federal support.
The central reason is that there are 4 million American families who have reportedly been left behind or said to have been forsaking the funds, despite their potential eligibility.
In fact, research compiled by the Center on Budget and Policy Priorities (CBPP) found that $13billion has gone unclaimed.
- Cybele Mayes-Osterman
IRS MAKES CTC ANNOUNCEMENT
Both the US Department of the Treasury and the Internal Revenue Service (IRS) announced last month that roughly $15billion of federal greenbacks were “paid to families that include nearly 60 million eligible children” as part of the CTC made available because of President Joe Biden’s $1.9trillion American Rescue Plan package passed in March.
The IRS has confirmed back in June that there have been 475 million economic impact payments amounting to $807billion after three separate rounds of stimulus over the last year.
- Cybele Mayes-Osterman
WHAT TO DO IF YOUR CTC IS MISSING
If you believe you are eligible for the Child Tax Credit checks and have not received one or both that have gone out already, there are a few things you can do.
If you did not file taxes, there's a tool called the Child Tax Credit Non-filer Sign-up Tool where you can add your information to see if you qualify.
If the IRS does not have your deposit information, the second check that went out last week may still be in the mail.
Fortunately, there is an online portal that Americans can use to check the status of their checks.
- Cybele Mayes-Osterman
WHO QUALIFIES FOR THE CTC?
Single parents or parents who file their taxes as single will qualify for the full checks if they make $75,000 or less.
If you make more than $75,000, the monthly check is reduced by $50 for every $1,000 over the cap and eventually phases out completely.
Married couples who file taxes jointly and earn up to $150,000 a year qualify for the full payments, and the same situation applies where the payments eventually phase out.
- Cybele Mayes-Osterman
EASILY UPDATE YOUR DETAILS ON IRS PORTAL
If you have changed bank accounts, just visit the IRS Child Tax Credit portal and update your details.
If the correct information is not on the system, there’s a risk that families will not receive their child tax credit payment on time, according to BGR.
This tool also allows families to check if they have received their monthly payments, and to unsubscribe if they want to receive their child tax credit in one lump sum next year.
- Cybele Mayes-Osterman
WHEN WAS THE CTC INTRODUCED?
The child tax credit expansion scheme was introduced as part of Biden’s American Rescue Plan that was signed into law in March.
Most American families qualify for the checks for $300 per month for every child five and under and $250 per month for every child six to 17.
There will be another four monthly checks sent to families before the end of the year.
The scheme is set to end next year but Biden and several Democratic lawmakers are keen to expand the program.
- Cybele Mayes-Osterman
IRS EXPERIENCING TECHNICAL ISSUES
The IRS recently warned though that families may be experiencing delays as a technical glitch reportedly saw checks mailed in the post rather than sent electronically.
It caused a problem for four million households.
There are also warnings of scammers after any stimulus check you might receive so the IRS has also urged American's to be cautious about sharing personal details.
- Cybele Mayes-Osterman
AUTOMATIC PAYMENTS
Payments are automatic for those who filed their 2020 tax returns by the May 17 deadline or those who claimed on the 2019 tax return, so there's nothing more you have to do.
But if you didn't file taxes before the cut off you can use the IRS tool, called the "Non-filer Sign-up tool," to get the money.
This will update the IRS with all your latest information including your income level and how many dependents are in your household.
Otherwise you will have to wait to file the next tax return to get the full monthly child tax credit payment you're owed.
- Cybele Mayes-Osterman
CTC AIMED AT LOWER INCOME TAXPAYERS
If a family makes above a certain income limit, they will not receive the Child Tax Credit cash so it's mainly aimed at lower income households.
While the income limits determine how much you will receive and if you qualify, there isn't a limit on the number of children you can receive credit for.
Parents who make less than $150,000 together or a single parent who makes under $112,500 will be entitled to the full amount.
If you have a higher income you'll get less.
- Cybele Mayes-Osterman
WHEN ARE PAYMENTS DUE?
The payments are due to come in on the 15th of each month unless it clashes with a public holiday.
The second check was issued earlier this week, so parents will have already received this month's payment, and the next check comes September 15.
You need to be registered by August 30 though, to receive next payment in a month's time.
From now until December 15, deposits will be made monthly into accounts on file with the US's Internal Revenue Service (IRS).
- Cybele Mayes-Osterman
USE NEW IRS TOOL TO RECEIVE CASH FASTER
In a statement released on Friday, the Internal Revenue Service said that its new feature will allow families receiving their credit by mail to "quickly and easily update their mailing address using the Child Tax Credit Update Portal, found exclusively on IRS.gov."
The new feature is aimed at preventing mailing delays for any families who opt to receive their payments by paper check.
In order to receive September's payment to a new address, the IRS encourages Child Tax Credit recipients to update their postal information using the new portal by midnight Eastern Time on Monday, August 30.
- Cybele Mayes-Osterman
SHOULD YOU UNENROLL FROM THE CREDIT?
Some Americans are relying on the monthly payments to pay bills and cover different expenses but others may find it beneficial to wait and receive the money as a bigger tax refund in 2022.
You may also want to unenroll if your household details changed and you no longer qualify for monthly payments from September through December. Otherwise you will have to update your information in the IRS portal.
If you are concerned the IRS will send you more money than you qualify for, you may want to opt-out. If you are overpaid, you will have to pay back the money next year.
- Cybele Mayes-Osterman
MAKE SURE YOUR INFORMATION IS UPDATED
When moving to a new address, it’s key to inform the IRS on its website or by phone and also inform the US Postal Service’s Change-of-Address form.
If you were given a raise in pay or your child became an adult and turned 18 – these could all cause your family’s CTC amount to be less than what you received, CNET reports.
A handy way to offset having to pay back the feds for this money is to keep your family’s information updated.
- Cybele Mayes-Osterman
CHECKS CONTINUE THROUGH DECEMBER
The CTC checks started landing in Americans’ bank accounts and mailboxes in July and are expected to continue through December.
Most American families are learning they are eligible for the full $300 per month for every child five and under.
Others are getting $250 per month for every child six to 17.
- Cybele Mayes-Osterman
NEW DEADLINE OF AUGUST 30
On Friday, the IRS declared that those hoping to receive their next mid-month CTC check must provide the agency with any new information before midnight on August 30 in order to “have the change take effect in September”.
The IRS added: “Any of these changes made before midnight ET on August 30, will apply to the September 15 payment and all subsequent monthly payments, scheduled for October 15, November 15, and December 15.”
- Cybele Mayes-Osterman
$8,000 FOR FAMILIES WITH TWO KIDS
The new adjustments to the Child and Dependent Care Credit for 2021 mean that working American families who hit certain requirements will pocket thousands in extra stimulus funds.
It covers childcare costs up to $8,000, as well as costs for looking after a spouse or parent who can not care for themselves.
This increases to $16,000 in expenses for families with two or more dependents.
These child care expenses include everything from daycare to after-school programs to nannies to day camp and more.
- Cybele Mayes-Osterman
ARE YOU LATE TO SIGN UP FOR THE CTC?
If you're signing up late, you'll be pleased to know that you won't miss out on the installments from previous months.
Instead, your remaining payments will be larger compared to those who signed up before they began in July.
That's because the cash is an advance on the 2021 tax credit – half to be delivered this year and the rest when families file their taxes next year.
- Cybele Mayes-Osterman
WHEN WERE THE CREDITS SIGNED INTO LAW?
The tax credits — included in the $1.9 trillion American Rescue Plan signed into law by President Joe Biden in March — were aimed to provide families with up to $3,600 per child over the course of a year.
The first half, which started in July, has been going out as direct monthly payments of up to $300 for the rest of 2021.
The other half can then be claimed when filing 2021 taxes.
- Cybele Mayes-Osterman
IRS SENDING OUT WRONG AMOUNT
Due to a technical issue, the IRS warned that up to four million families who received the first July child tax credit payment through direct debit will receive a check for this month's cash.
The IRS may have issued checks to an old address if families have not properly updated information as it is working from data compiled through 2019 and 2020 tax returns.
- Cybele Mayes-Osterman
ONE WEEK LEFT TO OPT OUT OF PAYMENTS
You have until Monday, August 30 to unenroll from the September credit, which is the third advance payment.
Some Americans are relying on the monthly payments to pay bills and cover different expenses but others may find it beneficial to wait and receive the money as a bigger tax refund in 2022.
You may also want to unenroll if your household details changed and you no longer qualify for monthly payments from September through December. Otherwise you will have to update your information in the IRS portal.
- Julia Fields
SCAMMERS WILL ASK YOU TO VERIFY INFORMATION
When it comes to emails and text messages, consumers should be cautious of any that have instructions encouraging you to click a link to “request benefit payments,” according to the Better Business Bureau.
Consumers should be suspicious of any messages that ask them to "verify" their personal information like bank account details or your social security numbers.
- Julia Fields
LOOK OUT FOR SCAMMERS
Spoofing technology has made it easier than ever for scammers to impersonate anyone, including government agencies.
To protect themselves, most experts recommend that consumers avoid picking up any calls from unfamiliar phone numbers.
If you do answer a call, and it’s about your stimulus payment, keep in mind that U.S. government agencies won’t ask you to pay anything upfront to receive your funds.
Additionally, government agencies won’t call, text, email, or contact you on social media to ask for your Social Security, bank account or credit card number.
- Julia Fields
DELAYS FOR PAPER CHECKS
The IRS recently warned though that families may be experiencing delays as a technical glitch reportedly saw checks mailed in the post rather than sent electronically.
It caused a problem for four million households.
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