We amended our 2020 tax return and it automatically changed us to paper ck. How can we fix this for adv child tax credit pmts? We've always had direct deposit until now

[Delila2]

Its week 14 in waiting for amended return refund, zero sign of that paper check.. We went thru the process of id.me irs to try and add our Bank acct and when you get to manage payments, it always has an error. Always. How do we get back to direct deposit?

[xmasbaby0]

Even during “normal” times it takes about four months for the IRS to process an amended return.  During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns.  Do not expect quick results from amending.  When the IRS issues a refund for an amended return it will be by check.  They do not make direct deposits for refunds for amended returns.  You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

[macuser_22]

Amended returns can only be paid by paper check.   Amended returns are taking more than 6 months to process.

You can change the payment method of the advance child tax credit on the IRS website:

https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments

[xmasbaby0]

Sorry---but while you have an amended return pending you will not receive the monthly advance payments.   If they finish processing your amended return you can then go to the IRS portal to enter banking information.  That portal is not working yet. 

Even if you do not get the monthly payments you will be able to get the CTC on your 2021 tax return.

[macuser_22]

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@xmasbaby0 wrote:

Sorry---but while you have an amended return pending you will not receive the monthly advance payments.   If they finish processing your amended return you can then go to the IRS portal to enter banking information.  That portal is not working yet. 

Even if you do not get the monthly payments you will be able to get the CTC on your 2021 tax return.

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Do you have a IRS reference that amended returns delay the advance payments - I do not find any?

The IRS says the portal to enter banking information was available on July 14.

Issue Number: COVID Tax Tip 2021-101

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The Child Tax Credit Update Portal allows families to update direct deposit information or unenroll

The IRS recently upgraded the Child Tax Credit Update Portal to enable families to update their bank account information so they can receive their monthly Child Tax Credit payment. The tool also allows families to unenroll from the advance payments if they don’t want to receive them. The Update Portal is available only on IRS.gov.

Any updates made by August 2 will apply to the August 13 payment and all subsequent monthly payments for the rest of 2021. Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS.

People without current bank account information can use the online tool to update their information so they can get the payments sooner by direct deposit. Those who are not enrolled for direct deposit will receive a check.

How to update direct deposit information
First, families should use the Child Tax Credit Update Portal to confirm their eligibility for payments. If eligible, the tool will also indicate whether they are enrolled to receive their payments by direct deposit.

If so, it will list the full bank routing number and the last four digits of their account number This is the account that will receive their July 15 payment.

If they choose, they can change the bank account receiving the payment starting with the August 13 payment.  

If the Update Portal shows a family is eligible to receive payments but not enrolled to receive them by direct deposit, they will receive a mailed check each month. If they want to receive their payments by direct deposit, they can use the Update Portal to add their bank account information.  Couples who are married and file jointly must both update their bank account information the same day to the same account to continue getting joint payments.

Any family receiving checks should consider switching to direct deposit to access their money quicker. Direct deposit removes the time, worry and expense of cashing a check, and eliminates the chance of a lost, stolen or undelivered check. People who don’t have a bank account can visit the Federal Deposit Insurance Corporation website for details on opening an account online or use the FDIC's BankFind tool to locate an FDIC-insured bank. BankOn, American Bankers Association, Independent Community Bankers of America, and the National Credit Union Administration have lists of banks and credit unions that can open an account online.

Families can stop payments anytime
Even after payments begin, families can stop all future monthly payments by using the unenroll feature in the Child Tax Credit Update Portal. Eligible families who make this choice will still receive the rest of their child tax credit as a lump sum when they file their 2021 federal income tax return next year. To stop all payments starting in August and the rest of 2021, they must unenroll by August 2, 2021.

Who should unenroll?
Some families may prefer to receive the entire credit as a refund when they file their 2021 return. The portal’s unenroll feature can also be helpful to any family that no longer qualifies for the child tax credit or believes they will not qualify when they file their 2021 return. Married filing joint taxpayers both need to unenroll. If one spouse does not unenroll, they will get half of the joint payment they were supposed to receive with their spouse.

For more information about the unenrollment process, including deadlines, see Topic J of the Child Tax Credit FAQs on IRS.gov.

The IRS will add more features to the Child Tax Credit Update Portal through the summer and fall. Soon people will be able update their mailing address. By fall, people will be able to use the tool to update changes to family status and income. More information is on the Advance Child Tax Credit Payments in 2021 page of IRS.gov

[Delila2]

Seems fair, they owe me money (amended return) and somehow that gets in the way of the CTC, but if I owe them money, nothing will get in the way of their collecting it! 

Their system to manage does say it is up, but for sure isn't working. Thanks for your help!

[xmasbaby0]

 

This is all so new.   It seems that eligibility for the payments is affected by a pending amended return.    

 

Q B12. Can I still get payments under pending eligibility? (added June 21, 2021)

A12. No. You will not receive advance CTC payments until we are able to confirm your eligibility.  If we are not able to confirm eligibility during 2021, you may be eligible to claim the full 2021 Child Tax Credit when you file your 2021 tax return.

The IRS site says that banking information can be entered for payments beginning with the August payment.   The portal might be working to accept the information now, but it could not be used for a July payment.

[Jtortora70]

Well I have to say that isn't entirety true. I amended my return May 16th. Well I received a direct deposit from the IRS on July 28th. I thought it was for my unemployment tax refund because they didn't update my amended return on the IRS website until Friday the 30th of July and it said I would get a letter explaining the changes within 3 weeks. Got a letter August 9th. CP21B explaining it was for my 2020 amended return and the amount I received direct deposited is the same they owed me. Still no unemployment tax refund yet

[sonnyrichards]

I have a similar case and I'm not sure what's going on. I also filed an amended return based on turbo tax's instructions. I was not only getting a refund on my unemployment taxes but once the adjustments took effect it also qualified me for EIC. The return was accepted on 4/28/21 and I was told I would receive a paper check in the mail. My child tax credit is also pending because my amended tax return still being processed. I did my research and found the same answers as all of you above and figured I'd just have to wait. Well, just last night which is roughly 15 weeks into the process, I have a direct deposit pending at my bank. The odd thing is, the amount doesn't fit for my amended return amount or child tax credit payments. I checked both portals and nothing has changed. So now I don't know what this deposit is even for. It can't be the amended return because it isn't a paper check and it definitely doesn't fit the amount of the child tax credit. I also am positive that I don't owe the IRS anything so they wouldn't have reduced the amount for that. I have no clue...