Did you get a payment by direct deposit into your account, but not sure what it is for? No problem, here’s some information that will help you figure that out.
It could be:
The IRS is still processing some 2020 Individual tax returns and amended tax returns, on top of continuing to issue the third round of Economic Impact Payments (EIP3), all while also starting a new program to provide Advance Payment of the Child Tax Credit (AdvCTC) this year. All those various payments coming to eligible taxpayers can get confusing, especially since the notices with explanations that are issued based on those actions might not come right away in the mail.
Be aware that some of these refunds might come within days or weeks of each other. For instance, once a 2020 tax return gets processed, the IRS has the information it needs to be able to then generate the EIP3 (provided you qualify). That same tax information also alerts the IRS to issue the AdvCTC, if you qualify. If this happens, the IRS will automatically register you to begin receiving those monthly payments through the end of the year.
Returning a Refund, EIP, or AdvCTC
If for some reason, you believe you are not due a refund, or do not qualify for either or both of the other two payments, you can repay that amount. See our article titled Returning a Refund, Economic Impact Payment, or Advance Payment of the Child Tax Credit for full details.
For more information:
For additional IRS help, see the Let Us Help You page.