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IRS LAUNCHES NEW FEATURE FOR CHILD TAX CREDIT

IRS LAUNCHES NEW FEATURE FOR CHILD TAX CREDIT

The IRS has launched a new feature allowing any family receiving monthly Child Tax Credit (CTC) payments to update their income using the Child Tax Credit Update Portal (CTC UP). Taxpayers should enter any significant income changes by midnight on November 29 in order to be reflected in their December payment, scheduled for December 15.


The IRS will adjust the remaining payment amounts to ensure people receive the total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses’ future monthly advance payments of the CTC.


The IRS will adjust the payment amount to reflect these changes and ensure total advance payment for the year of up to $1,800 for each child under age 6 and up to $1,500 for each child ages 6 through 17. For any family already receiving the maximum payment, a drop in income will not increase the payment amount. Normally, the maximum CTC payment is $300 per month for each qualifying child, under the age of 6, and $250 per month for each child, ages 6 to 17.


Any family whose income rose substantially in 2021 should consider having their payments reduced. Information on calculating the CTC can be found on the IRS's website. Finally, for families who have not signed up for the CTC, the deadline is November 15, 2021. Taxpayers can get these benefits, even if they do not work and receive no income.