Monthly checks have ended for now. What should you do if you haven't received a payment or got the wrong amount?
Monthly advance child tax credit payments have now ended in the US, with roughly $93 billion disbursed to families in 2021. In mid-December, final checks were deposited into millions of bank accounts, and paper checks continue to arrive in the mail through the end of the year.
If you're one of the many eligible people still waiting for checks from prior months or who haven't received any money at all, there could be a number of reasons. One problem could be inaccurate or outdated information on your 2020 tax return. Or perhaps the IRS doesn't know you're eligible. Also, USPS mail slowdowns could be delaying the delivery of printed checks.
It's not easy to contact the IRS for help. First, double-check the IRS Update Portal to make sure your information is correct. If everything is up to date, don't panic. We'll share other methods for figuring out what happened to your money. Plus, learn more about whether the enhanced child tax credit will continue in 2022.
Here are a number of other possible reasons why your family hasn't received a payment.
|The problem||What to do|
|You didn't file a 2019 or 2020 tax return||File your taxes in the spring|
|Your payment is coming in the mail||Give it time to arrive, as it could take weeks|
|You unenrolled from advance monthly payments||File your taxes in 2022 to get your money|
|Your bank info or mailing address is wrong||Change your details when you file your taxes|
|Your income has changed||Change your details when you file your taxes|
|You can't find any reason why you didn't get a payment||It may be time to file a payment trace with the IRS|
There are several reasons why families are reporting wrong payment amounts. First, you'll want to quickly verify your eligibility through the Eligibility Assistant. Then we suggest using CNET's child tax credit calculator to see how much you should have received based on your income and the ages of your dependents.
One possible reason for a lower payment is if only one spouse changed an address or bank account in the IRS Update Portal. In that case, the other spouse's half could have gone to the old address or bank account. Another reason why parents are getting inaccurate payment amounts is if the IRS processed your 2020 tax return late (or it wasn't filed until recently), and the agency only recently adjusted payment eligibility amounts for the previous monthly check.
An additional complication is that there's currently no way to inform the IRS of the number (or ages) of children between the 2020 and 2021 tax seasons. (More functionality was supposed to be added to the Update Portal to allow parents to add or subtract qualifying children this fall.) Right now, you can change your income in the portal by going to Manage Advance Payments and selecting "Report Life Changes."
Keep in mind that parents of children younger than age 6 can receive up to $300 per month or $250 for children aged 6 to 17, but those amounts phase out for higher earners. So, if your income was significantly higher last year or you didn't claim a dependent on your 2020 tax return, you might get less of the credit than you should this year based on the prior figures that the IRS has on file.
You may have received an overpayment for September, resulting in smaller amounts with the October, November and December checks.
Some parents may also see an incorrect (or higher) payment amount in the Update Portal due to having a closed or invalid bank account on file. According to the IRS (question G12 on that page), if the agency has to reissue a payment as a paper check after a failed attempt at direct deposit, the total amount that appears in the payments processed section of the portal may be double, even if your family received the correct amount by mail. The IRS is working to fix this error.
The easiest way to see what's happening with your previous checks is to log in to the IRS Update Portal to view your payment history. To use it to manage all of your advance payments, you'll need to first create an ID.me account.
If the portal says your payment is coming by mail, give it several business days to arrive. If you have direct deposit set up, make sure all the information is accurate. If you haven't set up banking details in the portal, or if the bank account on file with the IRS has closed or is no longer valid, you should expect all further payments to come as paper checks.
If your payment history in the portal says that the money was sent by direct deposit, check your bank account again in the next few days to make sure it's cleared. According to the White House website, transactions will show the company name "IRS TREAS 310" with a description of "CHILDCTC" and an amount for up to $300 per kid (unless there's been an adjustment due to a missing payment). 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."
If you've verified your eligibility, and your account says that your payments were issued but they're still missing, you may need to file a payment trace with the IRS. To do that, you'll need to complete Form 3911 (PDF) and mail or fax it to the IRS. Only do this if it's been at least five days since the scheduled deposit date, or four weeks since the payment was mailed by check. We explain how to file a payment trace here.
With the IRS sending out millions of child tax credit payments, along with keeping up with income tax refunds and unemployment tax refunds, it's certainly possible the agency could have made a mistake and sent you a check even if you don't qualify. For instance, some people who weren't qualified for stimulus checks still received payments. It could also be that your family qualified in prior years but will not qualify when they file their 2021 tax return in 2022.
If you're absolutely positive you're not eligible for this year's enhanced child tax credit payments but you got a payment, you'll need to return that money to the IRS.
Keep in mind that both parents need to unenroll separately. If your spouse unenrolls and you don't, you'll get half of the joint payment you were supposed to receive with your spouse.
If you're eligible for the full amount of child tax credit money, you won't have to pay it back. Child tax credit payments do not count as income. However, if you no longer qualify for the full amount but you receive the full amount anyway, you may need to pay back that extra money.
An overpayment from the IRS may occur if your income went up this year (meaning you're getting too much money based on old tax info) or if your child is aging out of a payment bracket this year (meaning the IRS is determining amounts for a 5-year-old instead of your 6-year-old). The age brackets for dependents apply to how old your child will be at the end of this calendar year.
The agency is using what it calls "repayment protection," so if you do receive an overpayment but fall below a set income level, you don't have to pay the money back. Above that income level, you will have to pay back some or all of the extra funds. Here's more on taxes and how repayment protection works.
As of right now, the increased payments are still temporary, just for the 2021 tax year. That means after you get your final payment with your tax refund in 2022, the child tax credit could revert back to its original amount from previous years.
Sen. Joe Manchin stated recently that he wouldn't support President Joe Biden's Build Back Better bill, which includes extending the enhanced child tax credit and monthly advance payments for one year.
We'll continue to update this story as we find out more.
Here's detailed information about tracing 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 receive.