Problems with your child tax credit fee? Top 5 questions answered

Some dad and mom are seeing delays with their first child tax credit fee or incorrect quantities. 

Sarah Tew/CNET

On July 15, the IRS despatched near $15 billion to eligible US families as part of the expanded child tax credit program. Most dad and mom acquired their first fee by direct deposit or mail, however the much-anticipated rollout wasn’t with out a few bumps. Families would possibly nonetheless have considerations about eligibility or earnings necessities, and a few are reporting points with lacking checks or inaccurate totals. You can use CNET’s child tax credit calculator to see how a lot you must’ve acquired. 

Here’s one attainable downside: The child tax credit is being issued prematurely on a month-to-month foundation this 12 months, so the IRS is counting on the newest tax return on file. That might trigger a difficulty if your household by no means submitted its tax info to the IRS, or if the tax info is now outdated due to a brand new child or a unique earnings. It is also an easier difficulty of the IRS not having your appropriate banking info. If that is the case, we are able to present you learn how to repair it earlier than Aug. 2 utilizing the IRS portals

The IRS Update Portal lets you examine your fee historical past, confirm eligibility and unenroll from the month-to-month checks if you happen to’re nervous about owing money to the IRS subsequent 12 months. And heads up, to make use of the portal it’s possible you’ll have to create an account if you have not already. Keep studying for solutions to frequent child tax credit issues, together with if if you happen to assume it’s essential to file a trace for a lacking fee. We have not too long ago up to date this story.

1. My household is eligible, however I by no means bought any cash. Why?

If you qualify for the improved credit however have not acquired your fee, there might be quite a few explanation why. If you filed your taxes, examine the Update Portal to see if fee is coming by mail. If so, give it a number of enterprise days to reach. If you could have direct deposit arrange, ensure all the data is correct. Note: If you did not arrange your banking particulars earlier than June 28, you must count on the July fee to return as a paper examine.

If all the pieces appears appropriate however you continue to did not get a fee, it’s possible you’ll have to file a fee 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 not less than 5 days because the scheduled deposit date of July 15, or 4 weeks because the fee was mailed by examine.

2. I did not file a tax return, however my household qualifies for funds. What ought to I do?

The IRS is utilizing your 2019 or 2020 tax return to find out child 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 probably the most up to date info, particularly if you happen to’ve had a child since then. It’s finest to enroll as quickly as attainable to start out getting funds if you happen to qualify. 

Reasons you did not get a child tax credit fee

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

3. The IRS portal says I do not qualify, however I bought a fee. Why?

With the IRS sending out tens of millions of child tax credit funds, alongside with maintaining with income tax refunds and unemployment tax refunds, it is actually attainable the company might have made a mistake. For occasion, some individuals who weren’t certified for the stimulus checks nonetheless acquired fee.

If you are completely constructive you are not eligible for the improved child tax credit funds however you bought a fee 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 subsequent deadline to decide out of the month-to-month funds is Aug. 2. This will assist stop you from having to pay again extra money if you file your 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 don’t seem to be eligible, they do meet the necessities and did obtain their first fee. We’ve contacted the IRS for extra particulars on this case.

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4. How do I know if my child tax credit payment was direct deposited?

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 child tax credit money?

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

What to know about the expanded child tax credit after 2022

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 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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