CHILD TAX CREDIT
2021 Child Tax Credit: how to change address with IRS tool
IRS's new implementation will allow them to update mailing address, to avoid issues in future payments. Additional features are yet to come.
The Child Tax Credit is all people are talking about now that unemployment benefits and stimulus seem to be reaching and end. This aid which helps parents overcome the crisis, also applies to those taxpayers who earn too much to qualify for extended payments, as long as adjusted gross income is less than $200,000 for singles and a maximum of $400,000 for married couples. In this cases the aid will be up to $2,000 per child.
#IRS is trying to get the advance #ChildTaxCredit payments to all eligible families – including those who don’t normally file tax returns. This #backtoschool season, help us get them their money: https://t.co/2G6i7dXm0z pic.twitter.com/JLSk7reGLp— IRSnews (@IRSnews) August 20, 2021
However, in a regular basis where taxpayers have AGI of $75,000 or less, child credit provides them with $3,600 a year, which equals to $300 every month for each 6-year-old or younger, while if your child’s age is between six and seventeen you will be benefiting from a $3000 year aid or a monthly $250 check.
New feature in the IRS tool
“Making the address change will mean all future IRS correspondence will be sent to that address” IRS said.
IRS also addressed taxpayers who might want future checks to be sent to their new address stating important data for those who want their address to take effect in September.
“Any family can easily have their September check and all future checks sent to their new address by using the portal to make an address change request,” the IRS said. “To have the change take effect in September, people need to complete the request before midnight Eastern time on Monday, Aug. 30.”
Moved your business recently? Tell #IRS: We’re sending notices to payers’ address of record this month to let payers know backup withholding may be needed. https://t.co/FNq5FkiQyB pic.twitter.com/RTCsT1GwMH— IRSnews (@IRSnews) August 20, 2021
Important for direct deposit taxpayers
Updating mailing address can be also useful for families that receive direct payment, as they are just receiving half of the aid, with the other half to be claimed on the 2021 tax return. In order for taxpayers to claim the money correctly, the IRS will send a letter by mail to guide families to a successful 2021 tax return. This letter is called “Letter 6419.″
“This is important because, for most families, the advance payments they are receiving during 2021 cover only half of the total credit. They will claim the remaining portion on their 2021 tax return,” the IRS said.
More changes to be implemented
The Child Tax Credit Update Portal is also useful for those who want to modify deposit information as well as cancel monthly payments.
However, they are planning to introduce additional features to the portal:
- Add or remove children,
- Report a change in marital status
- Report a significant change in income.
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