More Payments Coming from U.S. Government: What You Need to Know About Advance Child Tax Credit Payments
Many RBFCU members will be receiving payments from the federal government as the American Rescue Plan Act (ARPA) of 2021 has expanded the Child Tax Credit (CTC) for tax year 2021 only.
The first of these payments is scheduled by the Internal Revenue Service (IRS) to be issued July 15, 2021. RBFCU members who have Direct Deposit can check their accounts through Online Banking at rbfcu.org or on the RBFCU Mobile app. The IRS also will mail checks to those who have not provided banking account details to the IRS.
The IRS has scheduled payments to eligible taxpayers for July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15, 2021. Eligible taxpayers who wish to decline advance payments of the 2021 Child Tax Credit should visit irs.gov.
For questions relating to incoming direct deposits or mailed checks, including how much you should expect to receive, the IRS should be able to provide an answer. You can find the information at the IRS webpage titled “Advance Child Tax Credit Payments in 2021.”
RBFCU encourages all members to be on guard for individuals that contact you and identify themselves as a representative of the IRS. This could be a fraudulent attempt to steal our members’ personal information or money. The IRS will not call, text or email you asking for personal or bank account information.
For information on subjects related to the IRS payments, including the process to ensure that you receive your payment, read the FAQs below.
What is the Advance Child Tax Credit (CTC) payment(s)?
These are advance payments from the federal government for taxpayers who claim children as a dependent on the tax returns they file. The payment amounts differ for children under 6 years of age or ages 6 to 17. For 2021 only, these payments are being made in advance as provided by the American Rescue Plan Act passed by Congress and signed by President Joe Biden in March.
How much should I expect to receive through Advance Child Tax Credit (CTC) payment(s)?
If you are eligible, the IRS has announced the payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17. Please check irs.gov for information on eligibility. The total of the advance payments will be up to 50 percent of the Child Tax Credit. Advance payments will be estimated from information included in eligible taxpayers' 2020 tax returns (or their 2019 returns if the 2020 returns are not filed and processed yet).
When will I receive my Advance Child Tax Credit (CTC) payment(s)?
If you are eligible, the IRS has announced the first of these payments is scheduled to start July 15, 2021. You can check with RBFCU to confirm your direct deposit by signing in to your Online Banking account on rbfcu.org or the RBFCU Mobile app. These deposits will be processed to your RBFCU account in the same way that a tax return deposit is posted, as the funds are received. The processed items can be identified by Company Name that includes either IRS or TREAS. For those who have not shared their account information with the IRS, checks should be received through the mail.
Whether you receive a direct deposit, or if you deposit the mailed check with RBFCU, your funds from the IRS are available immediately in most cases.
There will be more than one payment?
That’s correct. The IRS has scheduled payments to eligible taxpayers for July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15, 2021. Eligible taxpayers who wish to decline advance payments of the 2021 Child Tax Credit should visit irs.gov.
What do I need to do to receive my payment?
If you filed a tax return for 2020, the IRS will use the same information to determine your eligibility for the CTC and calculate the payment amount. If you haven’t filed a tax return for 2020 yet, the IRS will use information from 2019 tax filings for this program.
How do I know if I received the check via direct deposit?
You can check with RBFCU to confirm your direct deposit by signing in to your Online Banking account or the RBFCU Mobile app. These deposits will be processed to your RBFCU account in the same way that a tax return deposit is posted, as the funds are received. The processed items can be identified by Company Name that includes either IRS or TREAS.
What are the income ceilings in order to receive a check?
All information regarding payments can be found on irs.gov. According to the American Rescue Plan, payments are reduced (phased out) at the following adjusted gross income levels based on filings for the latest tax return (2020 or 2019): for incomes more than $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
Has my Child Tax Credit increased?
According to the IRS, the American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for qualifying children under the age of 6 and to $3,000 per child for qualifying children between ages 6 and 17. Before 2021, the credit was worth up to $2,000 per eligible child, and 17-year-olds were not considered as qualifying children for the credit.
Will the IRS call or communicate with me to obtain information that the representative claims will help me receive my payment?
If you ever feel uncertain that the communication you receive from someone identifying themselves as being with the IRS is not legitimate, make sure to visit irs.gov to protect yourself against potential scam. The IRS will not call, text, or email you asking for personal or bank account information. Please be on guard for attempts by fraudsters to try and steal personal information or money.
This article is for informational purposes only, and is not intended to provide, and should not be relied on for tax advice.