The Child Tax Credit Update Portal has been updated to allow families to update their direct deposit information or to unenroll from receiving advance payments for the child tax credit. Taxpayers can access the Child Tax Credit Update Portal from IRS.gov.
Updates that have been made by August 2nd, 2021, will apply to the August 13th payment, as well as any subsequent payments throughout 2021.
If changes haven’t been made, the July payment will have been deposited with the IRS’s previous direct deposit information on file.
Taxpayers without any current direct deposit information can get their payments sooner by acting and updating their information now via the online portal. Those who have failed to un-enroll will receive a paper check.
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How Taxpayers Can Update their Banking Information
First, taxpayers should begin by confirming their eligibility for the advance child tax credit with the Child Tax Credit Update Portal. Eligible families can then use this tool to confirm that they’re enrolled to receive their advance payments via direct deposit.
If so, families will be able to see the last four digits of their account number and the complete bank routing number. After that, changes can be made, which will apply to the following payments through December 2021.
If the portal shows that taxpayers are eligible to receive these payments but have not un-enrolled from direct deposit payments, the IRS will send a paper check. In addition, banking information can be added on the portal to enable direct deposits with subsequent payments.
Married couples filing jointly must update their bank account information separately on the same day to continue receiving joint payments. Failure to do so will mean receiving half payments.
The IRS recommends families switch to the direct deposit payment method to receive their money quicker. It also reduces the chances of mailed checks getting lost, stolen, or undelivered. In addition, the Federal Deposit Insurance Corporation website supports people who don’t have an available bank account.
Alternatively, families without bank accounts can use the BankFind tool from FDIC for a list of banks with FDIC protection up to $250,000.
Advance Payments Can Be Stopped
Even if taxpayers have already received advance child tax credit payments, families have the power to stop further payments by un-enrolling via the Child Tax Credit Update Portal.
Un-enrolling in no way prevents families from receiving the remainder of their child tax credit as a lump sum when they file their 2021 tax returns. However, to stop all payments, un-enrollment for August must have occurred before August 2nd, 2021.
Why Un-enroll from Advance Child Tax Credit Payments?
Some families prefer to receive their child tax credit as a lump sum when they receive a tax refund in 2022. It is also helpful for families who will not qualify for the child tax credit when they file their federal taxes for 2021. This can prevent needing to repay the excess amount later.
When un-enrolling, taxpayers who are married and filing jointly must both un-enroll, or they will receive half of the joint payment. To learn more about the general un-enrollment process, families can visit Child Tax Credit FAQs Topic J on the IRS website.
The IRS has already made its intentions clear to add more features to the Child Tax Credit Update Portal throughout both the summer and fall seasons. New features expected include the chance to update your mailing address, update family status, and change family income.
For more information on the latest updates, taxpayers are invited to visit the Advance Child Tax Credit Payments webpage on the IRS website at their earliest convenience.