Child Tax Credit: New online portal and IRS tools to help families ahead of July payment

The IRS is making additional tools available this summer for introducing the Child Tax Credit.

Sarah Tew / CNET

With families getting huge tax breaks this summer, some newly available resources are helping eligible families expand the Child tax deduction. That is a sign new IRS letter sent to 36 million families who may qualify for a payment. And earlier this week, the IRS launched an online tool that allows parents, who normally don’t have to file an income tax return, to receive an upfront payment of up to $ 300 per child over the next month (or an estimated annual grand total of up to $ 3,600 -Dollar).

It does have several limitations, though new nonfilers portal is the first of several. Another portal, called the Child Tax Credit Update Portal, will soon allow taxpayers to notify the IRS of changes to details such as marital status, income and number of children in order to receive the correct payment amount. Next Monday, June 21st, will also be Child Tax Credit Awareness Day, which the White House initiated to promote public outreach and education about the expanded program.

Before you dive into the numerous toolkits, you may want to check out ours Child tax accounting calculator to see how much money your household is eligible for. We can suggest some too Ways To Use Tax Credits For Your Child, give details on how you could Receive your payment and tell you how to say it Thousands of dollars back on childcare costs. We regularly update this story with new information.

What online tools and portals are there for this year’s child tax credit?

How the online tools help parents with eligible relatives according to the IRS:

  • A nonfilers portal – now open – allows you to provide the IRS with basic information about yourself and your loved ones when you normally would not have to file a tax return.
  • An online interactive tool to be released soon will help you determine whether you are eligible for the child tax credit prepayment.
  • A second online tool – which the IRS calls the Child Tax Credit Update Portal – will be available before July 1 and will allow you to opt out of the monthly prepayments and receive payment for the full amount of the credit in 2022 instead, according to the IRS said that this portal will later allow you to check the status of your payments and update the IRS with your updated information.

In addition to initiating a Child Tax Credit Awareness Day on June 21st with an online toolkit, the White House launched a new website for Child Tax Credit. The website has useful FAQs for families, eligibility details, and other downloadable information.

The IRS has also provided a compilation of free tax days in 12 select cities, including Los Angeles and New York. The tax days in the coming weeks will give eligible families the opportunity to prepare and submit their 2020 tax returns so they can receive the advance payments for the child tax credit.

How can I use the new ‘Non-filer Sign-up Tool’ online?

The child tax credit “Non-filer Sign-up Tool”, which is available now, is a possibility for those who do not have to file a tax return in order to provide the tax office with basic information about their dependents. This tool can be used by low-income families who are not earning enough to file a 2020 tax return but who must report the qualifying children born before 2021 to the IRS.

The Nonfiler tool allows you to electronically file a simple tax form with the IRS with enough information for the agency to determine your family’s eligibility for child tax credit prepayments. You shouldn’t use this tool if you need to file a tax return but have not already done so. Also, don’t use this tool if you’ve actually filed a 2020 tax return or if all of your dependents have filed a 2019 tax return.

To use the tool, families must have a primary residence in the United States for more than half of the year. To sign up, parents should have their personal information on hand, including an email address, social security numbers for dependents, and a bank routing number.

Note: The IRS recommends using the portal on a laptop or desktop computer, not a phone. While the tool isn’t mobile-friendly, according to The Washington Post, you can access it from a browser on your smartphone. In addition to requesting an email address, you will need to know your registration status and other tax-related information that as a non-registrant may not be readily available to you. The tool is also not available in Spanish. (We contacted the IRS because the tool is available in languages ​​other than English.)

The IRS has instructions on how to fill out the form as a non-submitter. Note that it can take up to 48 hours for the IRS to verify your email address – and an additional 48 hours after submitting your information for the IRS to accept.

1. First, create an account if you don’t already have one. You will need an email address to verify your information.

2. The next page, called “Fill Out Your Tax Forms,” ​​is where you fill in your information, including your enrollment status and dependents’ details. Because this portal is an update too the tool that nonfilers used to claim stimulus checks, you can add information about these payments, known as Recovery Rebate Credit, to the form. Add your bank details to receive your payments electronically instead of by post. Tap the Go to step 2 Button when you are ready.

3. On this page – labeled “E-File Your Tax Forms” – enter your Adjusted Gross Income, or AGI, and electronically sign the form. (Learn more about it here.) When you’re done, tap this Go to e-file Button to submit your information.

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There is no limit to the number of children parents can earn credit for as long as they and their loved ones are eligible.

Sarah Tew / CNET

Can I unsubscribe from the prepayment program on the IRS portals?

The soon-to-be-unveiled Child Tax Credit Update Portal allows you to do so refuse receipt the monthly child tax credit. This means that instead of receiving monthly payments of, say, $ 300 for your 4-year-old, you can wait until you file taxes for 2021 in 2022 to receive the lump sum of $ 3,600.

You may want to opt out of the monthly prepayment program because you expect your circumstances to change or if the monthly installments interfere with tax planning. Families who normally owe money to the IRS when filing their taxes may want to use the full next year loan instead. Or you can choose a higher payout if your household saves for large expenses in the next year.

What information should I provide to the IRS before paying on July 15th?

This summer, taxable families can use the portals to report changes in living conditions since the last tax return, such as: Change in income or Custody status. For example, if you are making less money this year, you should update the IRS of these changes to help you understand the correct child tax credit.

If you had or will have a new baby this year, it is important that you report this to the IRS so that they can receive your payment of up to $ 3,600 for this child. The same applies if you have adopted a child or a new dependent child has been added since the last tax return.

If you have full custody of your child, you are also the parent who will receive the money for your child. Note that parents who have joint custody do not all receive payment. This is important for domestic violence survivors, Nina Olson, executive director of the Center for Taxpayer Rights, shared during an IRS supervisory hearing. The “Circumstances Change Portal should allow them to enter their changes in marital status and also the whereabouts of the children,” said Olson.


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What details about the upcoming tools have not yet been published?

There are several details that are still unclear about the IRS child tax credits, including:

  • The exact date the Child Tax Credit Eligibility Wizard and Child Tax Credit Update Portal will be available for families.
  • How the portals work for families updating their personal or banking information and how they can be accessed from a mobile device.
  • The process of deregistering monthly payments through the Child Tax Credit Update Portal.
  • When the Child Tax Credit Update Portal will be available in Spanish.

What if I know someone who may be qualified but doesn’t have a permanent address?

The IRS urges people to share child tax break information with others who do not have a permanent address. By doing this, you will help ensure that families get the payments they are entitled to. You can share information with them through the online portals and resources so that they know about the programs that will help them file a tax return.

Further details on the 2021 child tax credit can be found here How much money you can expect Also here is what it takes for you and Qualify your loved ones for the payments.


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