Must Read on IRS Deposits for Child Tax Credit

We’re receiving numerous emails about mysterious, unexplained IRS deposits showing up in our clients’ bank accounts. While some of these are for the unemployment taxation and excess tax credit adjustments from the CARES Act, many are for advanced child tax credit payments.

We’re providing this article in addition to the one we sent back in June (click here for that article) in order to highlight some important info.
 
Keeping Records
The main takeaway we’re trying to provide from this article is that you MUST track any payments you’ve received. That’s because these payments will be reconciled on your 2021 tax return, just like the stimulus payments in 2020 were tracked on that tax return. We’ll be sure to include space on our client checklist for you to enter these figures.
 
NOTE: if you don’t provide accurate figures for amounts received, it will have us entering inaccurate info into your tax return. This will result in you receiving IRS notices, and also facing a delay on return processing/refund delivery. In order to avoid this, it’s VERY important you track all funds you receive from the IRS for these child tax credit payments.
 
IRS Tool
The IRS has continued to update it's website tools for these child tax credit payments. This allows you to do the following:

1. Manage Payments (see if you’re enrolled, decide if you want to unenroll, and provide accurate banking info)
2. Non-Filer Resource (allows those who don’t file returns to provide info in order to receive payments)
3. Eligibility Check (assess your qualifications for payments)

 
Again, please keep good records and be sure to opt out if you’re not eligible and want to avoid having to payment back ineligible credits come next tax return filing.
 
Feel free to contact us with questions…we’re happy to help!