Parents will be able to review and revise their personal details online this summer.
Sarah Tew/CNETSome 88% of American families are expected to benefit from this year's child tax credit expansion. Those who qualify for the credit will receive their first payment on July 15. Parents can prepare beforehand to make sure they get the right amount by using CNET's child tax credit calculator.
Once they're made available (before July 1), two online portals will be key to updating your information. You might need to use one of the portals if you don't typically file tax returns, or if you need to notify the tax agency about a change in the number of dependents you have. One of the portals will allow you to opt out of the advanced monthly payments if you'd rather receive one lump sum.
We'll tell you everything we know so far and update this story as the IRS releases more details. While you're waiting for your payments to arrive this summer, here are some different ways to use your child tax credit checks, how you might receive your payment (hint: it could be on a debit card) and how you can claim thousands of dollars back for child care expenses.
What will the two IRS child tax credit portals be for?
Right now, we know that the upcoming IRS portals will be helpful for parents to make necessary changes.
- The main portal will be used to let families opt out of receiving the monthly child tax credit payments -- this is for those who would rather get one large payment next year instead of partial payments through December.
- The other portal will be for families who don't typically file their tax returns. This will help make sure their information is up to date, including if they've gained new dependents.
When will families have access to the online portals?
The IRS has set an open deadline of July 1, though we don't have an exact date yet. The portals could come online sooner than that. The IRS is simultaneously processing tens of millions of tax returns, which may affect the timeline while it also organizes the child tax credit program.
What else can families do with the child tax credit portals?
Taxpayer families will be able to make changes to any life circumstances since they last filed their taxes, such as an income change and child custody status. For example, if you started making less money this year, you'll want to update the IRS about those changes so you can get the correct child tax credit amount.
If you had or will have a new baby this year, it's important to let the IRS know, so you can receive your payment for up to $3,600 for that child. The same applies if you adopted a child or if you gained a new child dependent since you last filed your taxes.
Also, if you've gained full custody of your child, you'll be the parent who receives the money for your kid. Note that parents who have shared custody will not each get a payment. This is important for domestic violence survivors according to comments during an IRS oversight hearing by Nina Olson, executive director of the Center for Taxpayer Rights. "That change of circumstances portal should allow them to enter their change in marital status and also where the children are."
Watch this: Child tax credit: Everything we know
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What about opting out of monthly payments through the web portals?
The main portal will let you opt out of receiving the monthly child tax credit payments. What does that mean? It means that instead of receiving monthly payments of, say, $300 for your 4-year-old, you can wait until you file your 2021 taxes in 2022 to receive the $3,600 lump sum.
You may also want to opt out because you're expecting your circumstances to change and don't want to update your information in the portal.
What about those who typically don't file taxes? Can they use the portals?
The IRS will open a second portal dedicated to people who don't typically file their income taxes. This child tax credit portal will allow this group to give the IRS their updated information, including the number and ages of their qualifying child dependents.
The portal is expected to let tax nonfilers submit a simplified electronic form to the IRS to secure their eligibility. This group would include people who don't have bank accounts, as well as the homeless population.
One of the upcoming portals will allow families to update their income information so they receive the right payment amount.
Sarah Tew/CNETWhat about those who don't currently have a permanent address?
Right now, the IRS is urging people to share information about the child tax credit to those who don't have permanent addresses. By doing this, you're helping make sure eligible people receive the payments they're eligible for. You can share the information about the portals with them so they know about the programs to help them file a tax return.
IRS web portal details that are yet to be announced
There are plenty of details that are still unclear about the IRS' child tax credit portals, including:
- The exact date the portals will be available to families.
- How the portals will work for families updating their information.
- How families will differentiate between the two portals.
- The process for opting out of the monthly payments.
For more child tax credit 2021 details, here's how much money you can expect. Also, here's what it takes for you and your dependents to qualify for the payments.
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