New Child Tax Credit Tool Makes Signing Up Easier – Forbes Advisor


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The Internal Revenue Service (IRS) has released an online tool,, to help families register for monthly child tax credit payments. The new collaboration with Code for America, an organization that works with government and other agencies to provide fair and accessible tools, is the IRS’s latest effort to reach millions of people by ensuring families enroll. for monthly payments.

The payments are part of the US bailout, a $ 1.9 trillion program that increased the 2021 child tax credit from $ 2,000 to $ 3,600. The bill also allowed families to receive half of their 2021 child tax credit in monthly installments from July 15 to December 15. is a mobile-friendly tool with bilingual functionality to reach a wider population.

Estimate the payment of your child tax credit

How to use the new online child tax credit tool

The new registration tool helps families, who are generally not required to file an income tax return, to easily register for monthly child tax credit payments.

Most eligible Americans should already automatically receive child tax credit payments. The IRS made the payments to those who filed a 2019 or 2020 tax return or who previously used the non-filing tool for the Child Tax Credit or Economic Impact Payments (checks of relaunch).

For others who have not yet received monthly child tax credit payments, you can use the tool if you meet the following criteria:

  • You have a valid social security number
  • You earned less than $ 12,400 for single filers ($ 24,800 for married couples)
  • You did not file a tax return this year
  • You have not received the full stimulus payment owed to you

The tool asks a few questions such as name, mailing address, social security number, dependents, and other information. Individuals can also choose to provide direct deposit banking information in order to receive monthly child tax credit payments more quickly. The tool allows users to select an Español option to complete the form in Spanish.

The IRS will use your information to file a simplified tax return on your behalf to register for child tax credit payments.

The need to reach low-income families

The new online tool is just one of many efforts by President Joe Biden’s administration, the IRS, and community outreach groups to help families receive monthly child tax credit payments. Since many low-income families are not required to file a tax return, some have been left behind and the IRS does not have their information to reach them.

This summer, the IRS hosted special events and partnered with outreach groups in 12 different cities to help low-income taxpayers quickly sign up for monthly child tax credit payments.

It also launched two online tools: the Child Tax Credit Eligibility Assistant and the Child Tax Credit Update Portal. The eligibility tool determines whether taxpayers are eligible for the credit, while the portal allows individuals to update information and opt out of payments altogether.

These efforts increased the number of eligible children by 1.6 million more after the second round of monthly child tax credit payments in August. The IRS distributed more than $ 15 billion in second round payments and helped families meet basic needs, such as paying for food and clothing.

Are you eligible for monthly child tax credit payments?

If your income and eligible child meet the criteria, you may be eligible for the new monthly child tax credit payments.

Single tax filers are eligible with a modified adjusted gross income (MAGI) of $ 75,000 or less ($ 150,000 for married couples). If your income exceeds these thresholds, you may still be eligible. However, the IRS will reduce the monthly child tax credit payment by $ 50 for every $ 1,000 earned for MAGI above $ 200,000 for single filers ($ 400.00 for married couples).

You must also meet the criteria for your eligible child. The child must be related to you, aged 17 or under, a U.S. citizen, resident national or alien, and have a valid Social Security number. You must also provide at least half of your dependent’s financial support.

As the payments expire in December 2021, the Biden administration has expressed an interest in extending the monthly child tax credit payments beyond 2021. However, if no action is taken, the tax credit for children will revert to the pre-2021 rules. Prior to the American Rescue Plan, the child tax credit excluded 17-year-olds and the maximum credit was $ 2,000 per child.

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