(WFRV) – The Internal Revenue Service has upgraded its online tool to enable families to quickly and easily update their bank account information to receive their monthly Child Tax Credit payment.
Payments will start hitting bank accounts on July 15 to approximately 65 million kids. The child tax credit was established as part of the American Rescue Plan signed into law in March that allows eligible families to receive monthly payments of up to $300 for each child under 6 years old and under and up to $250 for each child 6 to 18 years old. Recently, the IRS gave families an option to receive several payments are one large payment, one time.
The new bank account feature was added to the Child Tax Credit Update Portal which is available on the IRS website. Any changes made by August 2 will apply to the August 13 payment and all subsequent payments after that.
For those who have a bank account on file currently with the IRS, the July 15 payment will be placed in the direct deposit. Those not enrolled in direct deposit will receive a check, however the IRS encourages people to update their bank account information to utilize the new tool to get payments sooner.
How to update direct deposit information
Families can use the Child Tax Credit Update Portal to check their eligibility for the payments, if they are eligible they can select to receive direct deposits. It will ask for the full bank routing number and the last four digits of their account number. They can change the bank account receiving the payments starting with the August 13 payment. Only one account is permitted for each recipient.
Families can stop payments at anytime
Even after payments begin, families can stop all future monthly payments if they choose, which can be changed in the Child Tax Credit Update Portal. Families that make that choice will receive the rest of their tax credit as a lump sum when they file their 2021 federal income tax return next year. To stop all payments starting in August and the rest of 2021, they must unenroll by Aug. 2, 2021.
You can learn more about the Child Tax Credit on the IRS website by clicking here.