Child tax credit issues? Your top 5 payment questions answered

Some mother and father are seeing delays with their first little one tax credit payment or incorrect quantities. 

Sarah Tew/CNET

Although nearly all of eligible US families have obtained the primary child tax credit payment through direct deposit or mail, some are nonetheless ready for that cash. Some mother and father reported they received the unsuitable quantity, whereas some households with an immigrant partner did not obtain their payment due to an IRS glitch. If you fall beneath considered one of these circumstances, learn how a lot it’s best to get with our child tax credit calculator.

One potential downside is the kid tax credit is getting disbursed on a month-to-month foundation this yr, so the IRS is utilizing the latest tax return on file. That may trigger a problem if your loved ones by no means submitted its tax return, or if the tax info is now outdated due to a brand new little one or a special revenue. It is also an easier difficulty of the IRS not having your right banking info. If that is the case, we are able to present you repair it utilizing the IRS portals, though it could be too late for the August payment. 

The IRS Update Portal means that you can test your payment historical past, confirm eligibility and unenroll from the month-to-month checks should you’re nervous about owing money to the IRS subsequent yr. And heads up: To use the portal it’s possible you’ll have to create an account if you have not already. Keep studying for solutions to frequent little one tax credit issues, together with if should you suppose that you must file a trace for a lacking payment. We have just lately up to date this story.

1. My household is eligible, however I have never obtained any cash. What occurred?

If you qualify for the improved credit however have not obtained your payment, there might be plenty of the reason why. If you filed your taxes, test the Update Portal to see if payment is coming by mail. If so, give it a number of enterprise days to reach. If you might have direct deposit arrange, ensure all the data is correct. Note: If you have not arrange your banking particulars but, it’s best to anticipate the July and August funds to come back as paper checks.

If every little thing seems right however you continue to did not get a payment, it’s possible you’ll have to file a payment hint with the IRS. To try this, you may want to finish Form 3911 (PDF) and mail or fax it to the IRS. Only do that if it has been a minimum of 5 days for the reason that scheduled deposit date, or 4 weeks for the reason that payment was mailed by test.

2. I did not file a tax return, however my family qualifies for 2021 funds. What now?

The IRS is utilizing your 2019 or 2020 tax return to find out little one tax credit eligibility. If you did not file taxes, you should still be eligible for advance funds — you may simply have to finish an additional step. You can use the IRS nonfiler portal to register for future funds. If not, the IRS might not have essentially the most up to date info, particularly should you’ve had a toddler since then. It’s greatest to enroll as quickly as potential to start out getting funds should you qualify. 

Reasons you did not get a toddler tax credit payment

The downside What to do
You did not file a 2019 or 2020 tax return. Use the IRS nonfiler portal.
Your payment is coming within the mail. Give it time to reach because it may take a number of days.
You cannot discover any purpose why you did not get a payment. It could also be time to file a payment hint with the IRS.

3. The IRS portal says I do not qualify, however I nonetheless received a test. Why?

With the IRS sending out tens of millions of kid tax credit funds, together with maintaining with income tax refunds and unemployment tax refunds, it is actually potential the company may have made a mistake. For occasion, some individuals who weren’t certified for the stimulus checks nonetheless obtained payment.

If you are completely optimistic you are not eligible for the improved little one tax credit funds however you bought a payment in any case, you may have to return that cash to the IRS. Start by utilizing the IRS Update Portal to unenroll from future paymentsthe following deadline to choose out of the month-to-month funds is Aug. 30. This will assist stop you from having to pay again more cash if you file taxes in 2022.

On the opposite hand, some members of a Reddit forum are reporting that regardless of the child tax credit portal displaying they are not eligible, they do meet the necessities and did obtain their first payment. We’ve contacted the IRS for extra particulars on this case.

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Child tax credit: Everything we know


4. How do I know if my child tax credit payment was deposited into my bank account rather than mailed?

Aside from checking the IRS portal to see if it shows that your payment was issued, you can check your bank account for the deposit. According to the White House website, transactions will contain the company name “IRS TREAS 310” with a description of “CHILDCTC” and an amount for up to $300 per kid. Don’t get this deposit confused with those for stimulus checks, which show up as “TAXEIP3” when deposited. Also, if you’re waiting on a tax refund, it’ll show up as “TAX REF.”

5. Will I have to pay the IRS next year for any child tax credit money I get this year?

If you’re eligible for the full amount of child tax credit money, you won’t have to pay it back. However, if you don’t qualify for the full amount because of a change in your income or number of dependents but receive the full amount anyway, you may need to pay back that extra money. 

The IRS is using what it calls “payment protection” so if you do receive an overpayment but fall below a set income level, you don’t have to pay back an overpayment. Above that income level, you will have to pay back some or all of the extra money. Here’s more on the income levels and how the payment protection works.


The next child tax credit check will be disbursed on Aug. 13. 

Sarah Tew/CNET

Will the child tax credit eventually become permanent?

As of right now, the enhanced payments are for this tax year. That means after you get your final payment with your tax refund in 2022, the child tax credit will revert back to its original amount from previous years, which was lower. However, it’s possible President Joe Biden and Congress could come to an agreement to extend the payments in 2025 — or make the changes permanent. Last week, Biden said he is urging Congress to do just that: “I say to my colleagues in Congress: This tax cut for working families is something we should extend, not end, next year.”

While no decision has been made yet, we’ll keep you updated on the outcome.

For more information, here’s how to opt out of future child tax credit payments. Also, here’s how to track down your child tax credit payment if you didn’t receive it. Not sure you got the right amount? Use CNET’s child tax credit calculator to see how much you should get.

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