The IRS has implemented important changes to the Child Tax Credit, which will help many families get advance payments of the Child Tax Credit starting the summer of 2021. According to the IRS, more than 36 million American families could be eligible for the Advance Child Tax Credit (ACTC) payments.
WHEN SHOULD YOU EXPECT YOUR ACTC PAYMENTS?
The IRS has announced they will release the first advance payment of the Advance Child Tax Credit (ACTC) payments on July 15, 2021. Half the total credit amount will be paid in advance monthly payments and citizens will claim the other half when they file their 2021 income tax return. For a full schedule of payments, see if I’m eligible to receive advance Child Tax Credit payments, when will I start receiving payments?
FSU Credit Union does not have any control over when the payments are deposited or mailed. If you have questions regarding the ACTC, please visit the Internal Revenue Service website for more information.
AM I ELIGIBLE FOR ACTC?
The IRS has developed a new tool for citizens to determine whether they are eligible for ACTC, the Advance Child Tax Credit Eligibility Assistant. To use this tool, you will need your tax return filed for 2020, or your 2019 tax return if you haven’t filed for 2020. If you don’t have a copy of the return and know your filing status and the number of qualifying children you claimed, you may be able to estimate the total income from your tax return to answer all the questions. You can use the following to make estimates:
- Income statements such as W-2s and 1099s
- Amount of any expenses or adjustments to your income
I NEED TO UPDATE MY PAYMENT INFORMATION. WHAT SHOULD I DO?
Additionally, the IRS has developed the Child Tax Credit Update Portal – allowing families to verify their eligibility for the payments and if they choose to, unenroll, or opt-out from receiving the monthly payments so they can receive a lump sum when they file their tax return next year.
WHERE WILL THE IRS SEND YOUR ACTC AND HOW CAN YOU DEPOSIT IT?
When doing your taxes, most people are asked to fill out direct deposit information to receive a fast and easy payment. The IRS will be using the direct deposit information from your most recent taxes to deposit your ACTC payment into your account. If you do not use direct deposit, the payment will be sent via paper check in the mail.
If you receive a paper check, you can then deposit it in your credit union account. If you have a smart device, we recommend downloading our new Mobile Banking app to deposit your check! If you need to set up your online banking, please use this article as a reference to navigate Online & Mobile Banking.
The FSU Credit Union is here to help! If you have questions regarding depositing your ACTC payment, please do not hesitate to Contact Us.