(CBS Baltimore) – The revised tax credit must begin in just two weeks. But a recent study by Data for Progress showed that about half of eligible Americans don’t know it’s coming. On July 15, parents will be sent the first installment of what can add up to $ 3,600 per child, whether they expect it or not. Those who are unaware can be pleasantly surprised. Those aware may want to take additional steps to ensure they receive what they owe or participate in monthly payments by 2021. There is the Child Tax Credit Update Portal, Non-Filer Registration Tool, and Child Tax Credit Eligibility. Assistants – three tools recently launched by the Internal Revenue Service (IRS) – come into play.
How much can you get?
The IRS will pay $ 3,600 per child to parents of children up to five years old. Half will come as six monthly payments, and half as a 2021 tax credit. From $ 300 per month and another $ 1,800 in tax time. The total amount changes to $ 3,000 per child for parents ages six to 17, or $ 250 per month and $ 1,500 in tax time. The IRS will make a one-time payment of $ 500 for dependents aged 18 or full-time college students up to age 24.
Payment amounts will be based on adjusted gross adjusted income (AGI) reflected on a parent or a 2020 parent tax return. (AGI is the sum of an individual’s earnings, interest, dividends, alimony, retirement distribution and other sources of income less certain deductions, such as student loan interest, alimony payments and retirement contributions.) phase out at a rate of $ 50 per $ 1,000 of annual income in excess of $ 75,000 for an individual and beyond $ 150,000 for a married couple. The benefit will be fully refundable, meaning it will not depend on the recipient’s current tax burden. Eligible families will receive the full amount, regardless of what they earn or little to owe in taxes. There is no limit to the number of dependents that can be claimed.
“It was essentially open to people with zero taxable income, even non-taxable people,” says Stephen Nuñez, the lead researcher on guaranteed income at the Jain Family Institute, an applied research organization in the social sciences. (Nuñez studied cash welfare policies, including field work to answer important questions about policies on the social security network.) “And they have increased the value to $ 3,000 per child, if they are over six years old, and $ 3,600 for children from zero to 5. Thus, it represents a fairly significant increase in the generosity of the benefit, and one that researchers believe is likely to have a major impact on child poverty.Some estimates suggest that this benefit alone can cut the child poverty rate by about 40%, and of course, for middle-class households, those who do not fall below the federal poverty line, but who are still struggling to make ends meet, will represent some money. additional cash. “
What IRS tools should you know about?
Eligible parents who filed taxes in 2019 and / or 2020 or signed up for a previous stimulus check will automatically receive payment from the IRS. If the information in the file is up to date, no further action is required.
In recent weeks, the IRS has launched three different tools to help potential credit card recipients update their children, check their eligibility and even change their bank account information. Let’s review what these tools can do.
Child Tax Credit Update Portal
La Child Tax Credit Update Portal will allow users to ensure they are registered to receive advance payments. It will also let beneficiaries enroll in advance payments in favor of a one-time credit when they file their 2021 taxes. The initial deadline for choosing from monthly payments has passed, but the next is August 2. (The opt-out deadline for forward payments will be held three days before the first Thursday of the month being opted out.)
Starting in early August, the tool will also allow users to add or edit bank account information for direct deposits. Other features coming through the portal include viewing payment history and dependent updates. To access this portal, users need an IRS username or an ID.me account. ID.me is a sign-in service used by various government agencies, including the IRS, the Social Security Administration and the Treasury Department, to authenticate users. Users need valid photo identification to create an account.
Registration tool for non-filer credit for children
La Registration tool for non-filer credit for children is to assist parents of children born before 2021 who are not typically taxed but are eligible for child credit advance payments. This means parents who have not filed their 2020 taxes, are not required to file and do not plan to file. (Parents who claim dependents on their 2019 tax returns should not use this tool.)
Users enter their personal information, including their name, mailing address, email address, date of birth, relevant social security number, bank account information, and identity protection PIN. The IRS uses the information to verify eligibility and, once confirmed, will begin making payments. The IRS and experts advise using the tool on a desktop or laptop computer rather than a mobile device.
Child Tax Credit Eligibility Assistant
La Child Tax Credit Eligibility Assistant allows parents to check if they are eligible to receive advance credit payments for their children. Users will need a copy of their 2020 tax return or, except for that, their 2019 tax return. It is also reasonable to estimate income and expenses in the appropriate fiscal year, even if the result may not be accurate. The assistant asks several questions to determine eligibility, but does not ask for sensitive information. No entries are registered.