The COVID-19 pandemic threw many of us off course, and for families, it introduced financial uncertainty, job loss, and sudden changes. During this time, the government rolled out several relief programs to help, including the Child Tax Credit. But if you missed out on some of those payments, don’t worry – you can still claim the $2,000+ in Child Tax Credit payments you missed. In this article, we’ll explain how to go about getting this money back into your pocket.
What is the Child Tax Credit?
First things first, let’s quickly recap what the Child Tax Credit is. Originally designed to support families, the Child Tax Credit gives parents a direct financial benefit for each qualifying child they have. The American Rescue Plan, passed in 2021, expanded the Child Tax Credit significantly. For the 2021 tax year, the credit was increased to $3,600 per child under six years old, and $3,000 for children aged six to seventeen. This increase was temporary, but the full amount was also made available in advance payments for the first time.
Why Did You Miss Payments?
If you were eligible for the Child Tax Credit but didn’t receive all or some of your payments, there are a few reasons why that might have happened. Here are some possibilities:
- Not Filing a Tax Return: If you didn’t file a tax return in previous years, or missed filing one during the pandemic, you wouldn’t have been in the system to receive the payments.
- Eligibility Issues: Some families who would otherwise qualify may have been affected by eligibility confusion, particularly in cases where there was a discrepancy in household income or child dependents.
- Opting Out: Some parents opted out of receiving monthly payments, thinking they would prefer to claim everything on their tax return instead.
- Technical Issues: There were also technical issues with the IRS portals, where families may not have received their payments on time due to errors in processing or incorrect information.
Steps to Claim the Missed Payments
Now that we know why some families missed payments, let’s look at how you can claim the money you’re owed.
1. File Your Tax Return for 2021
The first step in claiming your missed Child Tax Credit payments is to file your 2021 tax return, if you haven’t already. Even if you don’t typically file taxes because you don’t make enough income, you should still submit your return to get the credit.
Why is this important? Filing your tax return will help the IRS assess your eligibility for the Child Tax Credit. If you missed payments, this is where the adjustment will take place. Don’t skip this step!
2. Check the IRS Online Portal for Advance Payments
The IRS created an online portal called the “Child Tax Credit Update Portal,” where families can track their advance payments and review the total amount they’ve received so far. You can also update any missing or incorrect information about your child or income.
How to use the portal:
- Log into the portal and check the “Payments” section to see how much you’ve already received.
- If there’s a discrepancy, or if you didn’t receive your monthly payments, this will be the place to review your eligibility.
3. Claim Your Missed Payments as a Credit on Your Tax Return
Once you file your tax return, you’ll be able to claim the remaining Child Tax Credit as a lump sum when you file. The IRS will automatically calculate this for you based on the information in your tax return. The amount you’re owed will be added to your refund, or if you owe taxes, it can be applied to reduce what you owe.
What you’ll need to claim:
- Your child’s name, Social Security number, and date of birth.
- Any previous payments you’ve already received (you can find this on the IRS portal or through the notices they’ve sent you).
4. Consult a Tax Professional if You’re Unsure
If you’re feeling confused or uncertain about the process, don’t hesitate to consult with a tax professional. They can help ensure your claim is processed correctly and make sure you get the full amount of the Child Tax Credit that you missed.
Why consult a pro? Tax laws can be complex, and you may qualify for other credits or benefits that you weren’t aware of. A tax expert can help you navigate the system and maximize your refund.
What If You Didn’t Receive the Payments Due to a Change in Status?
If your family situation changed during the pandemic – for example, if you had a new child or if you got married – you may have missed out on additional credits that you’re entitled to.
1. Update Your Information with the IRS
If your circumstances changed, make sure to update your information with the IRS as soon as possible. This can be done through the IRS portal or by contacting them directly. The IRS uses the most up-to-date information available to determine your eligibility.
2. Claim Any Additional Tax Credits You May Be Owed
When filing your tax return, don’t forget to look into other potential credits, such as the Earned Income Tax Credit (EITC), which may further increase the amount you’re owed.
What Happens If You Miss the Deadline?
If you missed the deadline to file for the 2021 tax year, don’t panic. You can still file late and claim your Child Tax Credit, though there may be some delays. The IRS is currently processing returns and issuing refunds, but it may take longer than usual due to the backlog caused by the pandemic.
How to File Late
To file late, you can either use an online service like TurboTax or H&R Block, or work with a tax professional. Be sure to file as soon as possible, as the IRS only processes claims for missed payments up to three years after the original due date.
Conclusion
Getting the Child Tax Credit payments you missed during the pandemic is possible, and it starts with filing your tax return for 2021. Once you’ve done that, you’ll be able to claim any missed payments and potentially receive a significant refund. Make sure you check the IRS portal for any previous payments, and don’t hesitate to consult a tax professional if you need guidance. While the process may seem overwhelming, the potential payout is worth it.
FAQs
How do I check if I missed any Child Tax Credit payments?
You can check the IRS Child Tax Credit Update Portal to see the payments you’ve received and any discrepancies.
Can I still claim the Child Tax Credit if I didn’t file a tax return in 2021?
Yes! You can file your tax return now to claim the credit.
What should I do if I made a mistake on my tax return?
If you made a mistake, you can file an amended tax return to correct the information.
How much is the Child Tax Credit for 2021?
For 2021, the Child Tax Credit was $3,600 for children under 6 and $3,000 for children 6-17 years old.
Can I get the Child Tax Credit if I don’t have a job?
Yes, the Child Tax Credit is not based on employment, so you can still claim it if you meet the eligibility requirements.
How do I claim the Child Tax Credit if I didn’t receive monthly payments?
You will claim the remaining balance of your Child Tax Credit when you file your tax return.
Will the IRS automatically send me the missed payments?
No, you need to file a tax return to claim the payments you missed.
What happens if I don’t file my taxes on time to claim the Child Tax Credit?
You can still file late and claim the credit, but there may be delays in processing.
How long do I have to claim missed Child Tax Credit payments?
You can file for missed payments up to three years after the due date.
What other benefits can I claim when filing my tax return?
Besides the Child Tax Credit, you may qualify for the Earned Income Tax Credit and other state-level benefits.