The Treasury Department and IRS unveiled an online tool for the monthly Child Tax Credits on Monday in an effort to make sure low-income families can get the payments. The first checks are expected to go out to more than 36 million eligible families next month.
The new portal can also help people who did not receive but are qualified for the stimulus checks passed as part of coronavirus relief since early last year, officials said.
Starting July 15, families with children under the age of 6 are set to receive payments of $300 a month through the end of the year for each child, while those with children ages 6 to 17 will receive payments of $250 a month. The 2021 Child Tax Credit was also expanded to include low-income families who were otherwise earning too little to pay taxes. The new portal allows those families who might not otherwise be in the system for filing tax returns to provide information to the IRS to get payments.
“At Treasury, our goal is to make sure that every American can get the relief funding they need as simply as possible,” said Treasury Secretary Janet Yellen in a statement. “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.”
The tool should be used by people with a child born before 2021 who did not file an income tax return for 2019 or 2020 and did not use the IRS non-filers tool to register for stimulus checks last year. There, they can provide required information about themselves and their qualifying children 17 and younger, including banking information for direct deposits.
Once a person uses the online portal to provide their information, the IRS will automatically determine their eligibility and issue the monthly payments based on that information. They will not need to do anything else in order to receive payments. The IRS said the vast majority of payments would be made by direct deposit. Others will be delivered in the form of a check or debit card by mail…Read more>>