Panama City, FL –
(NEXSTAR) – The IRS says 88% of U.S. families with children will automatically be enrolled to receive new monthly child tax credit payments starting next month. But as with many tax breaks, many parents may prefer a large payment at the time of filing to the incremental increase throughout the year. The Internal Revenue Service says it will be an option with the enhanced child tax credit, but it is up to taxpayers to delay payment.
The American Rescue Plan was passed earlier this year, increasing the existing maximum child tax credit to $ 3,600 for children under 6 and to $ 3,000 per child for children 6 to 17. . month of 2021 via the IRS. According to federal authorities, around 39 million households will begin receiving checks as of July 15, “with no further action required.”
“Households covering more than 65 million children will receive monthly CTC payments by direct deposit, paper check or debit cards,” the IRS wrote in a press release last month.
The increased payments will be phased out for higher income earners, including jointly filing parents who earn more than $ 150,000.
Child Tax Credit Payment Calculator
Use the calculator below to estimate how much you could receive in periodic child tax credit installments as of July 2021
If you want to continue to take full credit for your taxes next spring, as you may have done with the smallest payment in previous years, you will have a small window of time to act. The IRS is expected to make new tools available this month to allow taxpayers to change information about filing status, number of eligible children and changes in their income, as well as payment preference.
CNET reports the agency will launch two portals by July 1. The main portal will be used to deny monthly payments and the second will be for families who typically do not file taxes, allowing them to notify the government of their dependents.
The exact launch date for these tools is not yet known, and the IRS website simply says, “More details on how to take these steps will be announced soon.
The first round of check distribution is only six weeks away, giving the IRS a small window of time to absorb the 2020 delayed tax crush, launch those new portals, and start distributing millions of new monthly checks. .
Prepayments run from July to December and cover up to 50% of available credit, meaning taxpayers who accept monthly checks will always see half of their benefit when filing taxes.
how to opt for one big payout instead of monthly checks Source link how to opt for one big payout instead of monthly checks