5 reasons your October child tax credit payment hasn’t arrived yet

0

Have you already received your last Child Tax Credit payment? The IRS began issuing the fourth batch of tax credit payments on Oct. 15, and millions of households have already received the money, either by direct deposit to their bank account or by mail. Once all payments are made, approximately 36 million families across the country will have received these funds, worth a total of $ 15 billion.

That said, not all households received their payments this month. Over the past few months, system glitches and other issues have resulted in delays or missing payments for families who would otherwise have had to receive the maximum payments of $ 250 to $ 300 per child. While many of these issues have been resolved, the IRS’s payment issuance system is not yet fully transparent. If you’re still waiting for your tax credit check to arrive, here are some reasons why your last tax credit payment may be delayed.

One Email a Day Could Save You Thousands

Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.

By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.

1. You receive your check by mail, not by direct deposit

If you are supposed to receive your child tax credit payment by mail but it has not yet arrived, your payment may be delayed due to a snafu with the USPS rather than the IRS. The fastest way to receive your monthly tax credit payment is to opt for direct deposit, as these payments are usually available within a day or two of the payment date each month.

On the other hand, households that should receive paper checks in the mail tend to have a longer wait time. Paper checks can take anywhere from a few extra days to a few extra weeks to arrive, as they have to go through the postal system. So if you typically receive a paper check, you may want to give it a few more weeks before contacting the IRS for a payment record.

2. Your spouse updated your information with the IRS – but you didn’t

If you are filing jointly with a partner or spouse and you need to update your information with the IRS, both parties should update their information in the system to avoid missing checks or delays. There have been a few issues with late or missing checks due to only one spouse updating their information in the Child Tax Credit Update Portal, so if you miss your check on the newer, it may be because only one person in your household changes bank account or postal information in the tax credit system.

When one party changes their information but the other does not, the payment is split into two, with half of the child tax credit money being sent to the updated address or bank account and the other half. to the old bank account or address. This issue caused delays and missing payments for about 2% of households in September – and it could be the reason your most recent check is smaller than normal or missing completely.

3. The IRS does not have your information on file

Did you file a tax return in 2019 or 2020? Otherwise, the IRS may not know that you are entitled to the tax credit – and that may be the reason why you did not receive your most recent payment. While non-filers may still be eligible for the No Income Child Tax Credit if they meet the tax credit restrictions, they must register using the Non-Filer Registration Tool. -Child tax credit filers to start receiving the money. Without a tax filing, the IRS won’t know you qualify and therefore will not return the money to you each month.

If you think this might be a problem, the good news is, it’s not too late to sign up. You can still request payments through the non-filer tool, but you will need to do so before November 15th. Otherwise, you will have to wait until tax season next year to claim the child tax credit money owed to you. .

4. The information you registered with the IRS is out of date.

The IRS uses your latest tax returns to determine if you qualify for payments. Once you are determined to qualify, payments are automatically released to you each month, unless you opt out. This makes it easier for millions of families to take advantage of the extra money, but it also poses problems for anyone who has experienced a major change in circumstances in the past two years.

For example, you might have earned too much money last year to qualify for payments, but if your income has changed significantly this year, you may now be eligible for payments. However, the IRS will not be aware of this change in income until you file your next tax return.

It could also be a problem for parents who added a child to their family in 2020 or 2021, whether through adoption or birth. Your new child could make your family eligible for tax payments – or an increase in tax payments – but you may be missing information right now because you have old information on agency records. fiscal.

In these cases, you can either wait for the IRS portal to allow you to update this information in the system or claim the money owed to you on your 2020 tax return. Either way, you won’t miss out not the payments – you may have to wait a bit to take advantage of it.

5. You unsubscribed from payments at some point

If you’ve opted out of payments at some point earlier this year, that could be the reason you’re missing your most recent child tax credit payment. The IRS has made it easy to opt out of monthly payments on the IRS update portal, but it’s not as easy to sign up for payments again.

If you think this is the reason your October Child Tax Credit payment is missing, you have two options. The first is to wait to file your 2021 taxes next April and collect the payments you missed into one lump sum. The other is to re-register for child tax credit payments, but you’ll have to wait until that feature is available on the update portal later this fall.

Qualifying families with children can expect two more child tax credit payments before the end of the year. The next one is expected to arrive in bank accounts in mid-November and final payment is expected to arrive in mid-December. Meanwhile, we continue to wait and see if Democrats are successful in getting monthly child tax credit payments extended for at least a year under the new legislation.


Source link

Share.

About Author

Leave A Reply