The IRS is preparing to distribute another round of advance child tax credits this Friday.
Last month, about 35 million American households received payments either by mail or direct deposit, according to the revenue service. And to date, more than 106 million payments have been made, totaling $46 billion, according to the U.S. Treasury Department.
The October installment marks the fourth of sixth monthly payments of the advance tax credit, with the last two set to be issued on Nov. 15 and Dec. 15. Taxpayers can claim the last half of the credit on their 2021 tax return.
Under the program’s expansion, eligible parents are getting a monthly tax credit of up to $300 per qualifying child under the age of 6, and up to $250 per qualifying child between 6 and 17 years ago.
Eligibility is determined through either the parent’s 2019 or 2020 income tax return filing, or — for those who don’t typically pay taxes— the IRS’s non-filer tool. Generally, most people won’t have to take any additional steps in order to receive the payments.
However, because the child tax credits are being paid up front, some people may wish to unenroll from the last two monthly installments — including those whose circumstances might be changing and are concerned about a potential overpayment from the IRS, and anyone who would rather wait to receive the tax credit in one large lump sum.
Recipients can still unenroll from the last two monthly installments by going to the child tax credits update portal.
The deadline to do that before the November payment is Nov. 1 at 8:59 p.m. PT.
Additionally, the portal can be used to view payment history, update bank account information for direct deposit, change an address and more. And earlier this month, the IRS indicated that recipients would also be able to make changes to their income, dependents and filing status using the online tool.
More information on the advance child tax credit can be found here. To see answer to the most frequently asked questions on the advance child tax credit, visit the IRS’s website.