Three IRS tools to help you get what you are owed – CBS Boston


(CBS Baltimore) – The revised child tax credit is expected to start in just two weeks. Yet a recent Data For Progress study found that about half of eligible Americans don’t know it’s happening. On July 15, parents will receive the first payment of what could total $ 3,600 per child, whether they expect it or not. Those who are not in the know may be pleasantly surprised. Those in the know may want to take additional steps to ensure they receive what they are owed or opt out of monthly payments in 2021. This is where the credit update portal of Children’s Tax, Non-Filer Registration Tool, and Child Tax Credit Eligibility Assistant – three tools recently launched by the Internal Revenue Service (IRS) – come into play.

How much can you get?

The IRS will pay $ 3,600 per child to parents of children under five. Half will be in the form of six monthly payments and half in the form of a 2021 tax credit. This comes down to $ 300 per month and an additional $ 1,800 at tax time. The total amount increases to $ 3,000 per child for parents ages 6 to 17, or $ 250 per month and $ 1,500 at tax time. The IRS will make a one-time payment of $ 500 for dependents aged 18 or full-time students up to the age of 24.

READ MORE: Child tax credit: IRS faces potential issues with monthly check implementation

Payment amounts will be based on the modified adjusted gross income (AGI) reflected on the 2020 income tax return of one or more parents. (AGI is the sum of salaries, interest, dividends, alimony, retirement distributions, and other sources of income minus some deductions, such as interest on student loans, child support payments and pension contributions.) The amount gradually at a rate of $ 50 per $ 1,000 of annual income over $ 75,000 for an individual and over $ 150,000 for a married couple. The benefit will be fully refundable, which means it will not depend on the recipient’s current tax burden. Eligible families will receive the full amount, regardless of what they earn or how little they owe in taxes. There is no limit to the number of dependents that can be claimed.

“They basically opened it up to people who have no taxable income, even non-tax filers,” says Stephen Nuñez, senior researcher on guaranteed income at the Jain Family Institute, an applied social science research organization. (Nuñez studies social assistance cash policy, which includes fieldwork to answer policy questions regarding the social safety net.) Children zero to five. So this is a fairly large increase in the generosity of the benefit, and one which the researchers say is likely to have a huge impact on child poverty. Some estimates suggest that this benefit alone can reduce the child poverty rate by around 40%. And, of course, for middle-class households, those who don’t fall below the federal poverty line but still struggle to make ends meet, that will mean extra money.

What IRS Tools Should You Know?

Qualified parents who filed taxes in 2019 and / or 2020 or who signed up for a previous stimulus check will automatically receive a payment from the IRS. If the information they have is up to date, no further action is required.

In recent weeks, the IRS has launched three different tools to help potential beneficiaries with the updated child tax credit register, verify their eligibility, and even change their bank account information. Let’s see what these tools can do.

Child Tax Credit Update Portal

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the Child Tax Credit Update Portal will allow users to ensure that they are registered to receive advance payments. It will also allow beneficiaries to opt out of down payments in favor of a one-time credit when filing their 2021 taxes. The original deadline for opting out of monthly payments has passed, but the next one is August 2nd. (Subsequent unsubscribe deadlines for upcoming payments will be three days prior to the first Thursday of the unsubscribe month.)

Starting in early August, the tool will also allow users to add or edit bank account information for direct deposit. Other upcoming features on the portal include viewing payment history and updating dependents. To access this portal, users need an IRS username or account. is a login service used by various government agencies, including the IRS, Social Security Administration, and Department of the Treasury, to authenticate users. Users need a valid photo ID to create an account.

Registration tool for non-filers for the child tax credit

the Registration tool for non-filers for the child tax credit is to help parents of children born before 2021 who generally do not file taxes but are eligible for advance payments of the child tax credit. This means that parents who have not filed their 2020 taxes, are not required to file and do not intend to file. (Parents who declared their dependents on their 2019 tax return should not use this tool.)

Users enter their personal information, including name, mailing address, email address, date of birth, social security numbers, bank account information, and identity protection PIN. The IRS uses the information to verify eligibility and, once confirmed, will begin making payments. The IRS and experts advise using the tool on a desktop or laptop computer rather than a mobile device.

Child Tax Credit Eligibility Assistant

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the Child Tax Credit Eligibility Assistant allows parents to verify if they are eligible to receive advance payments of the Child Tax Credit. Users will need a copy of their 2020 tax return or, failing that, their 2019 tax return. It is also reasonable to estimate income and expenses for the appropriate tax year, although the result may not be exact. The assistant asks several questions to determine eligibility, but does not ask for sensitive information. No entry is saved.

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