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Hey, parents! Your child tax credit money could be on the way if you received this letter from the IRS

By on June 17, 2021 0

Keep an eye on your mail. An IRS envelope could mean advance payments are coming in.

Angela Lang / CNET

A letter from the IRS can also be good news, you know. A coworker received a letter in the mail from the IRS and assumed it was an audit notice. It was not, and if you recently received a letter from the IRS, it may also be the advance. child tax credit payments from July 15th. Thirty-six million families in the United States will receive this same letter, with no less than 92% of households with children perhaps receive that extra money.

New rules established under the American Rescue Plan increase the child tax credit from $ 2,000 to a maximum of $ 3,600 per child. And unlike in previous years, half of the total amount of the payment will be distributed automatically upstream of the partial payments until the end of 2021. Parents have the right possibility of deferring monthly payments to receive the lump sum when filing taxes in 2022.

But there’s something else you need to watch out for: a second letter from the IRS regarding your child tax credit amount. We will also tell you what it means if you do not receive a letter. In the meantime, you can use CNET child tax credit calculator to estimate your total and find out more about how to spend the child tax credit money.

Who gets the most recent child tax letter of credit from the IRS?

Congratulations. If a letter that looks like this (see directly below) arrives in the mail …

irs-ctc-letter

A copy of the letter from the IRS that may soon end up in your mailbox.

CNET

… that means the IRS thinks you could qualify for the next child tax credit, based on the information it has from your 2019 or 2020 tax return – or details you provided using non-filer tool to get your stimulus check money.

Until there is a check in hand or a direct deposit in your bank account, it is not a good idea to take this letter as a guarantee of an upcoming child tax credit payment. but it looks like your chances are good. As with all IRS correspondence, keep this letter for your records.


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Which families will receive a personalized follow-up letter in the mail?

If you get the go-ahead from the IRS to receive child tax credit payments (which begins July 15), you will receive a second letter confirming your eligibility. It also indicates how much money you should expect to see in those checks.

The 2021 child tax credit payment schedule gets a bit tricky from there, but the result is that half of the total money will come in increments from July to December, with the remaining money coming to you after your tax return in 2022.

You will want to keep this letter so that you can compare the estimate with what you will eventually receive and ensure you get the right amount for the right number of children you are claiming. If there is a problem with the delivery of the child tax credit check, this letter is almost like your receipt from the IRS, which you may need to reference in the future (such as in a request to collect your taxes. 2021 next year).

cash-money-stimulus-child-tax-credit-2021-piggy-bank-epargne-july-15-payment-calendar-35

Mark the date on your calendar for the first child tax credit check next month.

Sarah Tew / CNET

Can a family still qualify if they don’t receive a letter from the IRS?

If a letter never appears in your mailbox, that doesn’t necessarily mean the IRS is ignoring you for child tax credit payments. After all, the vast majority of American households with children will receive some of the money reserved for parents.

For example, while 36 million families are supposed to receive a letter, up to 39 million households may be eligible for the credit. This immediately means that 3 million households could see a check, but no confirmation letter.

You may not receive a letter if the IRS:

What you can do now:

  • If you are not normally required to file taxes – someone the IRS calls a non-declarant – you will have the option to update your information, such as the number of children you can claim, using an online portal. The opening is scheduled for July 1.
  • If you haven’t yet filed your 2020 tax return but plan to do so, the IRS encourages families to do so as soon as possible by using the Free File System available on the IRS website. This will allow parents to update their banking information.
  • If you’ve moved, make sure the IRS and the U.S. Postal Service have your current mailing address.
  • Make sure you know the eligibility and income rules for parents and their children, including shared custody situations.

To learn more about the Child Tax Credit, here’s how you’ll use both IRS online portals launch by early July and what if you have a baby this year.