The Internal Revenue Service is poised to issue the second Child Tax Credit to more than 30 million households this week.
The enhanced CTC was allowed as part of the Biden administration's American Rescue Plan to assist families during the pandemic.
The tax credit was increased to $3,600 for each child under the age of six, and $3,000 for children aged six to 17. This is an increase from the previous credit of $2,000 per child, with half of the money delivered in six monthly installments from July to December.
When is the second child tax credit check coming?
The next payment will be made on Friday, Aug. 13.
Those eligible will not receive the full amount of the child tax credit this year. Half of the money will be paid in monthly installments, with the remainder due when taxes are filed in 2022.
In other words, the highest payment will be made next year, up to $1,800 per child. Until then, parents will receive six smaller installments this year to begin utilizing right immediately. The aim is to provide money sooner so people can pay for things like rent, food, and daycare, which is why the checks are labeled "advance payments."
I'd rather get a big refund next year. Can I opt out?
According to Mark Steber, Jackson Hewitt's chief tax information officer, the answer is yes.
As previously stated, the expanded CTC offers a $3,600 credit for each child under the age of six and a $3,000 credit for each child from six to 17.
A family with one child under the age of six, for example, will receive half of the $3,600 credit in cash, or $1,800, which will be divided into six $300 monthly checks.
Some taxpayers who want a larger tax refund in 2022 have wondered if they can skip the monthly payments and simply claim the whole $3,600 or $3,000 tax credit on their 1040s.
Taxpayers who wish to opt out should visit the Child Tax Credit Update Portal.
Those who get the check via mail may wait a little longer for the payment to arrive. If you have ample time and are concerned about an issue, you can visit the IRS Update Portal to correct your direct deposit information.
If you are worried, you can also file an IRS payment trace. More information on missed payments can be found there.