The Internal Revenue Service (IRS) released the new Non-filer Sign-up Tool to facilitate some families to receive their monthly child tax credit payment from the coronavirus relief plan.
The tool is for people who did not file an income tax return for 2019 or 2020 and did not use the IRS Non-filers tool last year to register for Economic Impact Payments, the IRS said.
As reported by nj.com, the new tool is available for families who normally are not required to file an income tax return to register for the expanded child tax credit.
Treasury Secretary Janet Yellen said in a statement that the idea is to simplify procedures to help residents. “At Treasury, our goal is to make sure that every American can get the relief funding they need as simply as possible.”
“We know working families can’t put off paying for doctor’s visits or grocery bills, and this new tool will help more people get their tax credit every month, starting in July,” added Yellen.
People can use the tool to provide information about themselves and their qualifying children age 17 and under. They can also enter direct deposit bank information so the IRS can deposit the payments directly into their checking or savings account.
The IRS explained that people who filed a 2019 or 2020 tax return, or used the IRS Non-Filers tool last year, do not need to use this new tool.
— IRSnews (@IRSnews) June 14, 2021
Starting July 15 and through December, the IRS will send monthly advance payments worth half of the total credit. Taxpayers can take the rest of the credit on their 2021 return.
The credit could be worth as much as $3,600 per child up to age six, and $3,000 per child ages 6 to 17. Singles with adjusted gross income of up to $75,000 and married couples who file a joint tax return and earn up to $150,000 would get the full amount based on 2019 or 2020 tax returns, or based on information that taxpayers entered last year into the IRS’ Non-Filers tool.
The credit would then phase out, going down by $50 for every additional $1,000 of income.
If you are not eligible for the new higher credit, you may be eligible to claim $2,000 per child, the previous amount available, as long as adjusted gross income is below $200,000 for singles and $400,000 for those married filing joint returns.