Child Tax Credit
Why is my child tax credit payments more than my 2021 Child tax credit?
What is...
The amount of advance Child Tax Credit payments that you receive during 2021 is based on the IRS’s estimate of the Child Tax Credit amount that you properly would be allowed for the 2021 tax year. The law requires this estimate to be based on two primary sources of information:
Family and life situations can be fluid throughout a given year. The following list provides examples of changes that could result in excess advance Child Tax Credit payments.
As a result of these types of ordinary family and life changes, you may receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you properly are allowed on your 2021 tax return.
How do I determine the amount of my first Economic Impact Payment?
Eligible individuals who file a joint tax return generally received up to $2,400 for themselves. All other eligible individuals received up to $1,200 for themselves. Those with qualifying children received up to an additional $500 per qualifying child.
Eligible individuals don’t need a minimum income for the payment. However, for higher income individuals, the first payment amount was reduced by 5% of the amount that their adjusted gross income (AGI) exceeds:
Update: In December 2020, the COVID-related Tax Relief Act of 2020 increased the AGI phase out amount for a Qualifying Widow(er) from $75,000 to $150,000. As a result, widows and widowers whose income was more than $75,000 should complete the Recovery Rebate Credit Worksheet to determine whether they may claim the additional amounts as a 2020 Recovery Rebate Credit and must file a 2020 tax return to claim the credit.
The $1,200 first payment for eligible individuals with no qualifying children ($2,400 for married couples filing a joint return) was reduced to $0 once adjusted gross income reaches the following thresholds:
Update: Qualifying widows or widowers whose AGI was more than $75,000 didn’t receive the full amounts of their first Economic Impact Payment. Those individuals may be able to claim the Recovery Rebate Credit and must file a 2020 tax return. Please refer to the Instructions for Form 1040 and Form 1040-SR for more information.
Each of these adjusted gross income limitation amounts increases by $10,000 for each additional qualifying child.
For example, because families with one qualifying child receive an additional $500 Payment, their $1,700 Payment ($2,900 for a married couple filing a joint return) will be reduced to $0 once adjusted gross income reaches the following thresholds:
Why did I not receive the second economic impact payment if I received the first one?
What is...
It is possible that you qualified for the first payment based on your 2018 return but did not qualify for the second payment based on your 2019 return.
If you did not file a tax return or use the Non-Filers tool prior to November 21, 2020, but you receive federal benefits, your payments were issued based on information we had on file from the Social Security Administration or the Department of Veteran Affairs.
If you did not receive any Economic Impact Payments or did not receive the full amounts, you may be able to claim the Recovery Rebate Credit by filing a 2020 federal tax return. See Recovery Rebate Credit for more information.
What is...
No. Do not include the third Economic Impact Payment on your 2020 return that you are filing this year. The third Economic Impact Payment is an advance payment of tax year 2021 Recovery Rebate Credit. If you didn’t receive your payment yet, it doesn’t mean you won’t. The IRS is continuing to send payments throughout the year to eligible individuals.
If you didn’t get the first or second Economic Impact Payment or got less than the full amounts, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return even if you don’t normally file.
If you need to file a federal tax return for 2020, anyone with no income or income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program
How long does it take for the portal to update after a change in address?
What is...
It takes 5-7 days to process your change in address and reflect on the change on your portal profile. Your update will affect your payments beginning in the next month.
Did the "qualifying children" process changed for 2021?
What is...
Yes
How much will I receive if I'm on social security?
If you did not file a tax return or use the Non-Filer tool to claim a spouse or any qualifying children, your first Economic Impact Payment was $1,200.
If you filed a tax return or used the Non-Filer tool to claim a spouse or qualifying children, your first Economic Impact Payment was based on the return filed or the information you entered in the Non-Filer tool.
When you file your 2020 tax return, you may also be eligible to claim the Recovery Rebate Credit for your spouse and any qualifying children under age 17 at the end of 2020. See the special section on IRS.gov about claiming the Recovery Rebate Credit if you aren’t required to file a tax return.
If you don’t normally file a tax return and you need to file a federal tax return for 2020, anyone with income of $72,000 or less can file their federal tax return electronically for free through the IRS Free File Program.
Why I am I receiving a CP21C notice?
What is:
he IRS issued you this notice if we were unable to process your 2019 tax return in time to issue your Economic Impact Payment. The notice was intended to provide the following explanation:
In some cases, the notice contained incorrect information. It stated:
This notice is not accurate for anyone who received it. Since no payment was issued, no offsets occurred. We apologize for the confusion this may have caused. You can disregard the notice.
You can claim the Recovery Rebate Credit on your 2020 tax return if you are eligible.
If you owe federal debts, here’s what you need to know about offsets and the Economic Impact Payments:
For more information about claiming the credit, see Recovery Rebate Credit.
Is the Third Economic Impact Payment included in AGI?
What is...
No, the Third Economic Impact Payment is not includible in your gross income. Therefore, you will not include the third payment in your taxable income on your 2021 Federal income tax return or pay income tax on the third payment. It will not reduce your refund or increase the amount you owe when you file your 2021 Federal income tax return in 2022.
A 2021 payment also will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
I am an incarcerated individual, will my tax form be processed if I sent it to another address that is not Austin
What is...
Yes. Forms mailed to another IRS address will either be processed at that location or be shipped to Austin for processing. An inmate who has already mailed a form to another IRS address should NOT mail a second form to Austin.
If I live in Puerto Rico, will I receive a payment?
What is...
Yes
Should I check Get my Payment for the Status of my first economic impact payment?
What is...
No. Get My payment will not give you a status for your first payment. The IRS and Treasury have issued all first and second Economic Impact Payments.
If you did not receive a payment this year or do not receive the maximum amount, you may be eligible to claim the Recovery Rebate Credit and must file your 2020 tax return.
I received a payment on my EIP card but did not activate it to use the funds, Can I claim the Recovery Rebate Credit?
What is...
No, you must reduce your 2020 Recovery Rebate Credit amount by the amounts of any first or second Economic Impact Payments that were loaded on the EIP cards. Whether you have activated your card is not relevant to the requirement that your 2020 Recovery Rebate Credit amount be reduced by the amount of the first and second Economic Impact Payments.
Your EIP card will continue to be available for use once you properly activate it. If not activated, no action will be taken on the card until it expires on the date indicated on the front of your card. The funds will remain valid on the card and accessible once you activate the card. The funds will not be returned to the IRS, unless you return the card to MetaBank®. If your card is lost or destroyed, you can request a replacement by contacting MetaBank®, N.A., at 800-240-8100 (option 2 from the main menu).
For more information, visit EIPcard.com.
How much will I receive for the Third Economic Impact Payment?
What is...
Eligible individuals who filed a joint tax return will receive up to $2,800, and all other eligible individuals will receive up to $1,400. Those with qualifying dependents on their tax return will receive up to $1,400 per qualifying dependent. If a 2020 tax return has not been processed when eligibility and amount of payment are being determined for you, your 2019 tax information may be used for this purpose.
If your 2020 tax return is processed after a payment is made, we will review the information on your 2020 tax return and may send you an additional payment beyond what you were already paid if you qualify for more based on your 2020 tax information.
Eligible individuals don’t need a minimum income for the third payment. However, for higher income individuals, the payment amount is reduced when their adjusted gross income exceeds the following thresholds:
The third payment is reduced if their AGI is above these thresholds. No payment is made when AGI is at least the following amount:
For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with incomes of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.
What if you do not hear a response after stating the opening statement?
What is...
If after providing the opening statement you do not hear the caller, restate the greeting. Please allow 30 seconds for the taxpayer to respond. If there is still no response, you may disconnect the call. Before disconnecting, please tell your caller “I’m sorry we are unable to hear you, please try to call back again if you still need support.”
I received letter 6417 in mail stating payments will be disbursed, however my child do not live in the United States. Will I still receive payments?
What is...
You are not entitled to advance Child Tax Credit payments. You may be eligible to claim the Child Tax Credit when you file your 2021 tax return but may not be able to claim all $3,000 or $3,600 per qualifying child because your main home will not be in the United States for more than half of 2021. The advance payments we send you may exceed the amount of Child Tax Credit that you will be allowed to claim on your 2021 tax return next year.
You can unenroll from receiving advance Child Tax Credit payments by using the Child Tax Credit Update Portal (CTC UP). For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.
What is the bank account number I used is close or no longer active?
What is...
In general, if the account is closed or no longer active, the bank returns the deposit and you may have been issued a check mailed to the address we have on file for you. This is generally the address on your most recent tax return or as updated through the United States Postal Service (USPS).
If the IRS received the payment back from the bank after December 31, 2020 a check was not issued to you. You will need to claim the 2020 Recovery Rebate Credit on your 2020 tax return.
As required by law and for security reasons, a letter about the first payment was mailed to each recipient’s last known address within 15 days after the first payment was made. The letter provided information about the first payment.
Is an incarcerated person eligible for a stimulus payment?
What is...
Yes, individuals weren’t denied Economic Impact Payments solely because they are incarcerated. An incarcerated individual may have been issued a payment if all eligibility requirements were met and the individual filed a 2019 tax return that was processed by the IRS. Eligible incarcerated individuals may claim a 2020 Recovery Rebate Credit on line 30 of their 2020 tax return. Please refer to the instructions for the 2020 Form 1040 and Form 1040-SR for more information.
My payment was based off my federal benefits, but it did not include my spouse or qualifying depend. What should I do?
What is...
File a tax return for 2020 with your spouse and claim all your dependents. When we process your 2020 tax return, the IRS will issue you an additional payment which will include an amount for any eligible dependents reported on your 2020 tax return.
If you don’t normally file a tax return but you need to file a federal tax return for 2020 and have no income or income of $72,000 or less, you can file their federal tax return electronically for free through the IRS Free File Program.
What should be done when logging into the system?
What is...
Log in to the systems noted below.
Always remember to plug in your headset • Amazon Workspace • MS Teams • Genesys • Check your MAXIMUS email for any important instructions or updates • Have support contacts available in case you may need them (helpdesk (1.888.349.7762), supervisor, etc.) • Review your work schedule in Aspect for break and lunch times
Me and the other parent have an agreement in which I will carry our child on the even years and they will claim on the odd years. Will I receive the CTC payments?
Yes. Because you claimed your child on your 2020 tax return, the IRS will automatically disburse advance Child Tax Credit payments to you even though you know you won't be claiming your child on your 2021 tax return. When you file your 2021 tax return (the one due in April of 2022), you could have to pay back the advance payments in excess of the Child Tax Credit you're entitled to claim on that return. You may be excused from repaying some or all of the excess amount if you qualify for repayment protection. For more information about repayment protection, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.
If you know you won't be claiming the Child Tax Credit on your 2021 return, then you should go to the IRS website to unenroll from receiving monthly payments using the Child Tax Credit Update Portal (CTC UP). If things change again and you are entitled to the Child Tax Credit for 2021, you can claim the full amount on your tax return when you file next year.
If I claim my mother in 2019, do I receive a $500.00 payment or do they receive their $1200.00 payment?
You did not receive an additional $500 for your mother because she is not your qualifying child under age 17. Your mother was not eligible to receive her own payment because you claimed her as a dependent on your 2019 tax return. Your mother may be eligible to claim the 2020 Recovery Rebate Credit if she can’t be claimed as a dependent by you or anyone else for 2020 and must file a 2020 tax return to claim the credit. Your mother will not be eligible for the 2020 Recovery Rebate Credit if you or someone else can claim her as a dependent on your 2020 tax return.
Why cant the IRS reissue my Second Economic Impact Payment?
The IRS delivered the second Economic Impact Payment as rapidly as possible, as required by law. Due to the compressed timeline, the IRS is unable to reissue any payments. If your payment was returned to the IRS we are unable to reissue the check.
If you’re eligible, and didn’t receive a second payment – or if you didn’t receive the full amount – you may be eligible to claim the 2020 Recovery Rebate Credit when you file your 2020 Form 1040 or 1040-SR tax return.
I have more questions about my EIP card, what should I do?
What is...
For all other EIP Card issues or questions, such as a name correction, contact MetaBank®, N.A. at 800-240-8100, or visit EIPcard.com
Caller 2020 tax return was rejected and do not understand why, what should be done?
What is...
Transfer