Deadline Nears for Final Monthly Child Tax Credit

ElitePersonalFinance
Last Update: November 30, 2021 Financial News

As the clock ticks toward midnight, the deadline to receive your final monthly Child Tax Credit (CTC) payment is only hours away. With the Internal Revenue Service (IRS) stipulating that beneficiaries must apply by 11:59 p.m. on Nov. 29 to receive a monthly payment on Dec. 15, applications can be made through the IRS’ Child Tax Credit Update Portal.

For context, if you’re already registered, no updates are required. However, if your financial situation has changed in recent months, updating your status with the IRS is always helpful. For example, if you need to change your mailing address or direct deposit information, the IRS’ portal can handle the request.

In addition, updating your income status can alleviate any potential headaches when you file your taxes in 2022. To explain, if you made less money in 2021 than in 2020, you might qualify for a larger CTC. Conversely, if you made more money in 2021 than in 2020, you may need to repay a portion of the CTC. As a result, updating your income status with the IRS will help avoid any unwanted surprises.

What If I Miss The Deadline?

If midnight arrives without filing your application, you will still receive a lump sum payment when you file your taxes in 2022.

For context, the CTC provides American families with $3,000 per child for children over six and $3,600 per child for children under six. Moreover, eligible maximum adjusted gross incomes are as follows:

  • $75,000 for individuals.
  • 112,500 for a family with a single parent (Head of Household).
  • $150,000 for couples.

And as it relates to the monthly payments, disbursements began in July 2021, with $250 per month allocated to families with children aged six to 17 and $300 per month given to children under six. Payments were sent automatically on the 15th of each month, and the final deposit commences on Dec. 15.

Conclusion

With the fate of the CTC still up in the air, the expanded benefits will expire in 2023 unless U.S. President Joe Biden’s Build Back Better Framework is passed into law. If not, the $3,000 and $3,600 CTCs per child will revert to $2,000 per child in 2023. Moreover, the Center on Budget and Policy Priorities revealed that 91% of low-income (less than $35,000) American families had spent their CTCs on necessities – like food, utilities, lodging, and clothing. As a result, finalizing an agreement is of immense importance.

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