The Child Tax Credit (CTC) is a tax credit that helps families with the cost of raising children. In July 2021, the CTC was expanded and made fully refundable, meaning that families who don’t owe any taxes can still receive the full amount of the credit. The CTC is paid in monthly installments from July to December. If you are eligible for the CTC, you can choose to have it direct deposited into your bank account or mailed to you as a check. The IRS will send you a letter in the mail with instructions on how to sign up for direct deposit. You can also go to the IRS website to sign up for direct deposit.
Eligibility for Direct Deposit
To receive the Child Tax Credit via direct deposit, you must meet the following eligibility criteria:
- File a tax return for 2020 or 2021 (even if you don’t owe taxes)
- Have a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Claim the Child Tax Credit on your tax return
- Provide your bank account and routing information on your tax return
If you meet all of these criteria, the IRS will typically send your Child Tax Credit payments directly to your bank account on the payment dates listed here.
| Payment Date | Next Steps |
|---|---|
| July 15, 2021 | File your taxes if you haven’t already. |
| August 13, 2021 | Check your IRS account or mail for your payment date. |
| September 15, 2021 | Receive your payment via direct deposit or mail. |
| October 15, 2021 | Check your bank account or mail for your payment. |
| November 15, 2021 | Contact the IRS if you haven’t received your payment. |
| December 15, 2021 | Receive your final payment of the year. |
Note that the IRS may issue paper checks to taxpayers who do not have a bank account on file or who have requested a check.
## Will the Child Tax Credit Be Direct Deposited?
The Child Tax Credit ( CTC) is a tax credit that helps families with the cost of raising children. The CTC is typically claimed on an individual’s tax return, but some families may be eligible to receive monthly payments of the CTC through direct deposit.
### Eligibility
To be eligible for the direct deposit of the CTC, families must meet certain income requirements and have a qualifying child. The income limits for the 2021 CTC are as follows:
| Filing Status | Income Limit |
|—|—|
| Single | Less than $75,000 |
| Married filing jointly | Less than $150,000 |
| Head of household | Less than $112,500 |
### Timeline
The IRS began sending out the first monthly payments of the CTC on July 15, 2021. Payments will be made on the following dates:
| Payment Date | Payment Amount |
|—|—|
| July 15, 2021 | Half of the CTC |
| August 13,2021 | Half of the CTC |
| September 17,2021 | Half of the CTC |
| October 15,2021 | Half of the CTC |
| November 12,2021 | Half of the CTC |
| December 17,2021 | Half of the CTC |
### How to Get the CTC Direct Deposited
To get the CTC direct deposited, families must provide the IRS with their bank account information. This can be done by using the IRS’s Direct Deposit Information page. Families can also choose to receive the CTC by mail.
### More Information
For more information about the CTC, families can visit the IRS website or call the IRS at 1-800-906-9900.
Bank Account Requirements for Direct Deposit
To receive the Child Tax Credit via direct deposit, you must provide the IRS with a valid bank account. The account must meet the following requirements:
Types of Accounts
- Checking accounts
- Savings accounts
- Prepaid debit cards (that are not connected to a bank account)
Ownership
- Accounts must be in the taxpayer’s name.
- Joint accounts are acceptable if the taxpayer is one of the owners.
Routing and Account Numbers
- The IRS requires both your bank’s routing number and your account number.
- Routing numbers can be found on the bottom of checks or through your bank’s website.
- Account numbers can be found on the front of checks or online banking statements.
Additional Information
| Requirement | Description |
|---|---|
| Account Status | Accounts must be open and active. Closed accounts will not receive payments. |
| Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) | Accounts must be insured by FDIC or NCUA. |
| Fraud Prevention | The IRS recommends splitting direct deposits between multiple accounts to protect against fraudulent activity. |
Eligible families will receive monthly payments of up to $300 per child under 6 and up to $250 per child ages 6 to 17 through the end of the year.
Troubleshooting Direct Deposit Issues
If you have not received your direct deposit, there are a few things you can check:
- Make sure that the IRS has your correct bank account information.
- Check with your bank to see if the deposit has been processed.
- If you have not received your direct deposit within 3 days of the scheduled payment date, you should contact the IRS.
Here are some additional things to keep in mind:
- The IRS will not mail paper checks for the Child Tax Credit. If you do not have a bank account, you will need to sign up for Direct Express, a debit card program that allows you to receive your payments electronically.
- The IRS will not send you a separate notice in the mail to let you know that your payment has been deposited.
- You can track the status of your payment on the IRS website.
Well, folks, that wraps up our journey into the fascinating world of direct deposit for the Child Tax Credit. We hope this article has illuminated the process and answered any lingering questions. Remember to double-check your eligibility and banking information, and keep your eyes peeled for any updates or changes. Thanks for reading, and swing by again soon for more enlightening financial tidbits!