Are You Wondering Why You Haven’t Received Child Tax Credit Payments?
If you haven’t been getting up to $300 per child every month as of late, keep reading to see why.
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Are you familiar with the American Rescue Plan? It was signed into law in March of this year, and it offered assistance to families struggling due to the coronavirus pandemic.
One of those forms of assistance was the child tax credit. While not necessarily new, the credit was expanded to up to $250 per child aged 6-17. Meanwhile, for each child under 6, parents could receive up to $300.
Could such money help fix your financial situation? Sure. But unlike those sporadic stimulus checks, these child tax credit payments are monthly. This means that starting in July, parents received payments via mail or direct deposit for their children. And instead of being a one-time thing, the money will keep coming through December 2021 around the middle of each month.
Why did the government decide on monthly payments versus a lump sum during tax season? Because many families needed that money now, not later.
Hence the name “advance” child tax credit payments.
Why You May Be Missing Payments
There are several reasons why you haven’t received child tax credit payments yet. For starters, you may make too much income because to qualify, you cannot earn more than the following:
- $150,000 if you are joint filers.
- $112,500 if you are a single head of household.
- $75,000 if you’re a single filer.
How can the IRS see your income to determine if you qualify for the child tax credit? By looking at your filed 2019 or 2020 tax returns or your usage of the Non-filer portal in 2020 that you may have used to receive stimulus payments. In other words, if you didn’t use that portal, or you didn’t file returns for 2019 or 2020, the IRS cannot tell if you qualify, which is probably why those payments are missing.
What to Do if You’re Missing the Child Tax Credit
You have multiple options if you haven’t received the advance child tax credit payments, even though you think you qualify.
The most obvious move to make is to file your 2020 tax return. While a pain, it can lead to tons of cash to keep your family afloat. How? First, it will determine if you qualify for the child tax credit. Second, it will help you receive any missing stimulus payments. And third, filing your return can help you get the earned income credit.
If you cannot afford an accountant or someone to prepare your return, use this service. It’s free and easy to use.
You may be in a situation where you don’t make enough money to where you’re required to file a tax return. For instance, if you make less than $24,800 as a married couple or less than $12,400 as a single parent, you can use a new government website called GetCTC. It simplifies the tax filing process for child tax credit payments, and as a bonus, it can help you receive any missing stimulus payments.