New online tool lets families update income changes – NBC Chicago


The IRS on Monday launched a new online feature that allows families currently receiving monthly child tax credit payments to report large income adjustments, but those hoping the changes will be reflected on the November payment must take action quickly.

In order for changes to take effect on time, information must be reported by Monday, November 1 at midnight. Families who are unable to meet the deadline must enter the changes by November 29, the December payment deadline.

Only families who are already eligible and receive payments based on their 2020 tax return can use the Child Tax Credit Update Portal to update their income, the agency explained.

The portal seeks to help families whose incomes have increased or decreased significantly in 2021 compared to 2020, as a large change in income can increase or decrease a family’s monthly payments.

Those who sign up for credit now will see larger remaining payments than families who have been receiving them monthly since July, when the checks began.

That’s because the monthly money is an advance on a 2021 tax credit, with half to be delivered this year and the rest to come when families file their taxes next year.

The US bailout passed in March expanded the existing child tax credit, adding monthly advance payments and increasing the benefit from $ 2,000 to $ 3,000 with a premium of $ 600 for children under. 6 years for tax year 2021.

Chicago Mayor Lori Lightfoot is among elected officials across the country urging parents to take advantage of extended credit.

Families who have filed their taxes in the past two years or received previous stimulus checks are likely to receive automatic payments, the mayor’s office explained, but those who have not earned enough income to be held to file taxes in 2019 or 2020 can still receive Payments.

Families who have not yet registered may wish to do so in the coming weeks.

After December, families will have to file an income tax return and wait until they get the full credit in the form of a refund from the IRS. On the flip side, families who claim the credit now will get money up front and get the second half when they file their taxes for 2021 next year.

There is also a limited window for families with eligible children to enroll if they haven’t received checks automatically. The site, launched by Code for America in collaboration with the US Department of the Treasury and the White House, will only be available until November 15.

Credit will continue until 2022, according to a cadre of the Democrats’ now $ 1.75 trillion proposal released last week.


Leave A Reply