October 29, 2021
As the IRS delivered the fourth round of 36 million Child Tax Credit payments totaling $15 billion in October, they also identified some recipients who appear to have mistakenly received the advance payments in July, August, and September either because their children were too old to qualify, or they were claimed on multiple tax returns.
The approximately 220,000 people who were receiving the payments will stop getting them starting in October. In the case of children being claimed on multiple tax returns, the eligible recipient will receive any remaining credit when they file their 2021 return. For those who were receiving payments for a child who is 18 or older at the end of 2021, the payments have been stopped, as have been payments for qualifying children claimed on more than one tax return in the same tax year.
Enter Income Changes By Midnight on November 1st
People with any significant income changes should enter that information into the Child Tax Credit Update Portal on Monday, November 1 by midnight so that it will be reflected in their November 15 payment; otherwise, it must be entered by November 29 to update December's payment.
Once the update is made, the IRS will adjust the remaining payment amounts to make sure people receive the total advance payment for the year. In the case of married couples, if one spouse makes the income update, it will apply to both spouses and could impact both of their future monthly advance payments.
There are two more payments, November 15 and December 15.
The Deadline to Sign Up Is November 15
It's not too late to sign up. The deadline is November 15, 2021. People can get these benefits if they don't work and if they have no income. People who sign up will typically receive half of their total Child Tax Credit on December 15 - a payment of up to $1,800 for each child under 6 and up to $1,500 for each child ages 6 to 17. Check if you may qualify for advance payments using the IRS Advance Child Tax Credit Eligibility Assistant. If you qualify, you can use the Non-Filer tool if you aren’t required to file a tax return and haven’t given the your information already.
Preparing to File Next Year
Families will receive Letter 6419 early in 2022 documenting any advance payments issued to them during 2021 and the number of qualifying children that was used to calculate them. The letter can help to accurately reconcile advance CTC payments received so that any remaining portion of the credit can be claimed on the 2021 tax return.
Along with updating income income, the Child Tax Credit Update Portal lets people verify their eligibility for the payments and:
Change from receiving a paper check to direct deposit
Change the account where their payment is direct deposited
Update their address
Stop monthly payments for the rest of 2021
The IRS FAQs page has information on reconciling Child Tax Credit payments on 2021 tax returns.
Additional Resources:
IRS Statement — Advance Child Tax Credit October payments
2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions