The success of the Child Tax Credit payments cannot be understated. It’s helped reduce poverty, and rates of hunger are down, too. The deadline for to enroll, or unenroll, in the next monthly upcoming tax credit is quickly approaching, so here’s what you need to know if you want to skip this payment or sign up for the first time if you just had a baby.
Parents who qualified to receive their third check from the Child Tax Credit (CTC) would have received it on or around Sept. 15 as a direct deposit.
Those who are expecting paper checks might need to wait until the end of the month before it arrives.
The fourth installment is just around the corner though – Oct. 15 to be exact – and the deadline to sign up for the payment (if you just had a baby) or unenroll from the monthly cash installments (if you want a bigger tax cut at tax-filing time in 2022) is quickly approaching.
As a refresher, the income threshold is $75,000 for a single filer or $150,000 for a combined joint filer. Parents can receive anywhere from $250 to $300 per kid, based on the kids’ age. After
When is the deadline to enroll, or unenroll for, the fourth installment of the Child Tax Credit?
With the next payment set to arrive on October 15th (for those who signed up for direct deposit), the deadline to sign up to receive the next payment is Oct. 4. For anyone who wishes to unenroll from the program, the deadline to do so is also October 4th by 9 pm EST.
Parents might want to opt-out if they no longer qualify based on the income brackets, or if they now qualify based on income brackets. They may also wnt to opt-in if they just had a baby and now qualify for the tax credit.
They can do so anytime now using the IRS Child Tax Credit Update portal, which is fairly simple to navigate.
The IRS is switching to a new sign-up tool after October 4th.
One of the larger issues with the current way to receive the Child Tax Credit is many parents who don’t traditionally file income taxes are being left out of the direct payments. It’s resulting in parents who may need the credit the most a lot of hassle trying to sift through all the information.
So, as a result, the administration and the non-profit organization Code for America came up with a more streamlined portal – GetCTC.org. This new portal is a step-by-step wizard that’s designed to help people understand clearly if they would benefit from filing a full return. And if it’s determined that they won’t see a benefit, they will be walked through a simplified tax return that can be done electronically.
This means with a basic set of information that can be completed and sent through in a matter of minutes will help more parents access easier ways to receive any Child Tax Credit benefits. The new site will be launched after the sign-up deadline for the October payments to transition before the December credit hits.
If you sign up for the CTC now, you’ll get bigger monthly checks.
The CTC is like an advanced payment on your taxes so for anyone who opts out of the monthly installments, which is half your income tax distributed evenly each month, there’s a benefit for signing up for the CTC now.
“Families that enroll for the credit now will see larger remaining payments than those who have been getting them monthly since July, when the checks began,” CNBC reports. “That’s because the monthly money is an advance on a 2021 tax credit, half to be delivered this year and the rest to come when families file their taxes next year.”
The IRS explains further saying that families who didn’t get a July or Aug. payment and their first payment will be the one that comes out in Sept. or Oct, they will still receive the total advanced payment – which totals up to $1,800 per child under 6 and $1,500 for kids between 6-17 – but it will be split in 3 or 4 installments instead of six.
“This means that the total payment will be spread over four months, rather than six, making each monthly payment larger,” the agency said. “For these families, each payment is up to $450 per month for each child under age 6 and up to $375 per month for each child ages 6 through 17.”
For more information, visit the IRS Child Tax Credit portal.