The Internal Revenue Service has launched a new feature on their online portal for families receiving child tax credit payments.
We’re Asking: Are You Actually Spending Your Child Tax Credit Payment? Take Our Poll
Tax Implications: Here’s How The Child Tax Credit Could Affect Your 2022 Taxes
The update to the online portal allows families to quickly and easily update their mailing address via the already existing Child Tax Credit Update Portal. This feature is particularly important for those who are receiving their child tax credit through paper checks instead of direct deposit.
It’s important to update your mailing address via the portal’s new feature to avoid mailing delays or have checks returned as undeliverable, the IRS adds. Any family that is receiving payments can have their September payment and all future checks sent to their new address by using the portal to make the address change request.
Important to note: It’s too late for the September payment to come to a new address, but you can still make changes. Unfortunately, if you did not complete the request by the deadline, it is likely your next payment will either be delayed or returned to the IRS.
As an added benefit, an address change in this portal also effectively changes your address across all IRS information systems. The IRS states that if you change your mailing address using the child tax credit portal, the ITS will then use this address for all future IRS correspondence. This can benefit those receiving payments via direct deposit as well, as all families, regardless of payment method, will be receiving a year-end summary statement of payments of the child tax credit, which will be sent through the address on file.
This means that even if you are one of the majority of families who are receiving direct deposit, you should still use the online portal to update your address even if you are not receiving paper check payments.
This year-end summary, called Letter 6419, will be necessary to fill out your 2021 federal income tax return next year. Without this information, you could potentially have difficulty claiming the other half of your benefit next year at tax time. This year-end summary officially claims that you received the first half of the payment. This summary will also be important if you opted out of any payments, or did not receive the entire half amount.
More From GOBankingRates