New Child Tax Credit Tool Makes It Easier to Sign Up for Payments. Here’s How

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A new online tool – GetCTC.org – will make it easier for eligible families to sign up for monthly child tax credits.

The tool, developed by the nonprofit, Code for America, in partnership with the White House and the U.S. Treasury Department, is one of the government’s many efforts to help families take advantage of the improved loans that monthly prepayments are available this year require. The Internal Revenue Service (IRS) has also launched two online tools in the past few months: the Child Tax Credit Eligibility Assistant and the Child Tax Credit Update Portal.

The latest tool, GetCTC.org, is characterized by its focus on accessibility.

It’s free, bilingual, mobile-friendly, and helps families who traditionally not file taxes to register for the monthly child tax credit more easily. Many eligible families have been automatically registered for prepayments based on 2019 or 2020 tax returns or information submitted via the IRS non-filer tool last year in order to receive stimulus checks. These recipients received their payments in July. But there are still many families whose income falls below the tax return threshold, never receives incentive payments, and may be missed – even if they qualify.

Two monthly payments have already been made to qualified families with children, but there is still time to sign up and receive monthly payments for the rest of the year. Here’s what you need to know about the 2021 Child Tax Credit and how to use this new sign-up tool:

What you need to know about child tax credits

The American rescue plan passed in March increased the child tax credit for the 2021 tax year. It now allows monthly prepayments and increases benefit from $ 2,000 per child under 17 to $ 3,000 per eligible child 6-17 years old and $ 3,600 for children under 6 years of age.

Unless you opt out, you’ll get half the amount you’re entitled to this year and the rest in 2022 when you file your next tax return. The remaining payment dates for this year are September 15th, October 15th, November 15th and December 15th.

You must meet a few criteria to be eligible for credit, such as:

• Have a child under the age of 18 at the end of 2021
• Must claim the child as a dependent on your tax return
• The child must have lived with you for more than half of 2021
• You filed a 2020 or 2019 tax return applying for child tax credit or submitting your information to the IRS using the non-filer tool
• Live in the US for at least half of 2021
• Meet income requirements

The IRS uses the income reported on your most recent tax return to estimate whether you are eligible for the child tax credit and the amount you will receive. You can take full advantage of the loan if your Modified Adjusted Gross Income is less than $ 75,000 for a single parent, less than $ 112,500 for heads of household, and less than $ 150,000 for married couples filing together.

Chances are you may receive less than the full amount or no payments due to your income. You can find more information about income restrictions on the IRS website.

How to use the new online child tax credit tool

In just two months since payments began, the child tax credit has shown positive effects on families. Census data released in August shows that the percentage of families in America struggling to pay their household expenses decreased from 31.5% to 29% after the first payments expired.

Pro tip

Families who have not yet registered for their monthly child tax deduction will not lose any money. Instead, the total payment is spread over a shorter period instead of six months, making each monthly payment larger.

If you haven’t received any upfront child tax credit or any of the three rounds of incentive payments, you can sign up using the GetCTC.org tool if you meet any of the following criteria:

• Have a valid social security number
• Earned less than $ 12,400 for a single parent ($ 24,800 for married couples)
• Didn’t file a tax return this year

The tool is available in English and Spanish. You will be asked some important questions like your name, mailing address, social security number, number of dependents, and other information. You can also provide your bank details and opt for a direct deposit for faster payments. If you have any questions or stand out throughout the process, there is a chat support function that is also bilingual.

Rather than filing a full tax return, the tool files what the IRS calls a “simplified tax return,” which contains only the information necessary to issue child tax credits and incentive payments. You can also submit a full statement through the website that can help you access additional credits that you qualify for, such as the income tax credit.

Code for America said in a press release that the portal “will continue to be refined in the days and weeks after launch to make it even easier to use” and that families “could receive payments within weeks of submission.”