You can now adjust your income in the Child Tax Credit Update Portal, but you have to do it by midnight Nov. 1. for changes to reflect on your Nov. 15 payment.
For families who have suffered a recent drop in income, this may result in higher monthly payments.
Families who miss the Nov. 1 deadline will still be able to update the portal until Nov. 29 with their adjusted income but it will affect December’s payment, not November’s.
Once you update your income in the portal, the IRS will automatically make the adjustments for the remaining payments. For married couples, only one spouse needs to make changes to the portal. The updated change will reflect in both spouses’ child tax credit payments.
You May Qualify For A Larger Child Tax Credit Payment
You qualify for the full child tax credit if your modified adjusted gross income is $75,000 for single filers ($150,000 married filing jointly). For some families, a drop in income to this threshold or lower may result in larger monthly child tax credit payments. If your income exceeds these thresholds, the IRS will reduce or eliminate your child tax credit payment.
Here’s why some families’ payments may change:
- Your income dropped to or below the threshold for the full child tax credit payment. For example, a family who experienced a job loss or had a significant decrease in income for 2021 may see larger November and December payments.
- You didn’t qualify at all and now qualify for a partial or full payment. For example, a family who did not qualify for the payments based on their 2020 or 2019 tax return information—whichever is filed later—may see larger November and December payments. In this case, the IRS will pay out the amount you qualified for since the income change over the remaining two monthly payments.
Generally, you can expect to receive up to $300 per qualifying child under age 6 and $250 per child ages 6 to 17.
If you are already receiving the maximum amount, a decrease in your 2021 income will not impact your child tax credit payments.
The IRS will mail Letter 6419 to families in Jan. 2022, which will provide you a detailed listing of the total amount of the advance child tax credit payments received in 2021.
When you file your 2021 tax return next year, you can use this letter to determine how much remaining child tax credit you can claim on your return.
Read more: What Is Adjusted Gross Income (AGI)?
Updating Your Income Could Reduce Your Child Tax Credit Payment
If your income increased in 2021, you should also make those changes in the Child Tax Credit Update portal before Nov. 1. If you don’t, you may be required to repay some or all of the credit when you file your return next year.
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Update Child Tax Credit Portal Today If Your Income Changed - Forbes
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