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Millions of American families with children have received three monthly payments since July, totaling $ 45 billion thanks to the new and increased child tax credit.
Families with eligible children have a limited time to register if they haven’t automatically received a check, perhaps because they typically don’t file tax returns. According to the agency, the IRS Non-Filer Portal will be open until Oct. 15, which means families only have one month to use it.
“If parents have not yet received payment and are entitled to it, it is not too late to enroll,” said Ashley Burnside, policy analyst at the Center for Law and Social Policy. “They can use the IRS portal, that’s always an option.”
After October, families will be able to use GetCTC.org, a site launched by Code for America in conjunction with the US Treasury Department and the White House, to take out credit by mid-November, according to a Treasury official.
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Families who signed up for the credit will see a larger balance payment than those who receive them monthly since the checks began in July.
This is because the monthly money is an advance on the 2021 tax credit, with half due this year and the rest due when families file their taxes next year.
The US bailout, adopted in March, expanded the existing child tax credit, added upfront monthly payments, and increased benefits from $ 2,000 to $ 3,000 for the 2021 tax year with a bonus of $ 600 for children under 6.
For families with two children aged 5 to 7 eligible for the full credit, the amount received is $ 6,600 ($ 3,000 for a 7-year-old and $ 3,600 for a 5-year-old).
If they filed a tax return in 2019 or 2020 and had direct deposit, the family would start receiving the first $ 3,300 of the credit in six monthly installments of $ 550, which would run from July to December.
But if that same family doesn’t traditionally file their taxes because they don’t earn enough, they must register to receive monthly payments through the IRS’s no-filer tool. If the family missed a payment in July but enrolled in August – as nearly a million households did – they would still receive $ 3,300 by December.
“Families who did not receive a payment in July or August and who receive their first monthly payment in September can still receive up to $ 1,800 for each child under the age of 6 and up to $ 1,500 for every 6 year old child. The total prepayment will be received up to $ 0.17, ”the IRS said in a statement dated Sept. 15, coinciding with the third monthly payment for families.
“This means that the full payment will be in four months instead of six, which makes each monthly payment more important. For these families, each payment is $ 450 per month for each child under 6 and $ 375 per month for each child aged 6 to 17, ”the agency said.
As each month passes, families who just signed up will receive a slightly larger payment as the IRS works to ensure they get the first half of the credit before the tax date. According to a Treasury official, those waiting to enroll through the Code for America tool in November will receive the full first half of the credit in the form of a check in December.
Families who traditionally do not deposit and subscribe to credits can claim any incentive payments for the past year and a half that they were eligible for but did not receive.
Why families should register now
Granted, if a family does not take out the new child tax credit this year, they will not receive the advance payment, but may still receive the lump sum next year. However, they will need to file a 2021 tax return to get the credit.
Even people who usually don’t file taxes because they don’t earn enough money can get the credit – a full refund of the advanced version, to make sure it reaches the most vulnerable families. was made eligible.
Still, experts say everyone with an eligible child should enroll as soon as possible, unless they’re part of a family that knows they want to receive lump-sum benefits next year and get benefits. flat-rate services. want to do.