Monday, June 28, 2021

COVID Tax Tip 2021-92: People who don’t have to file taxes may need to register for monthly advance child tax credit payments

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IRS Tax Tips June 28, 2021

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Issue Number: COVID Tax Tip 2021-92


People who don't have to file taxes may need to register for monthly advance child tax credit payments


The IRS Non-filer Sign-up Tool offers a free and easy way for eligible people who don't normally have to file taxes to provide the IRS the basic information needed - name, address, and Social Security numbers – to figure and issue advance child tax credit payments. Often, these are individuals and families who receive little or no income, including those experiencing homelessness.

Here's who should use this tool
This tool is for people who did not file a tax return for 2019 or 2020 and did not use the IRS Non-filer tool last year to register for Economic Impact Payments. It enables them to provide required information about themselves, their qualifying children age 17 and under, their other dependents, and their direct deposit bank information so the IRS can quickly and easily deposit the payments directly into their checking or savings account.

Here's who should not use this tool
Eligible families who already filed or plan to file 2019 or 2020 income tax returns should not use this tool. Once the IRS processes their 2019 or 2020 tax return, the information will be used to determine eligibility and issue advance payments. Families who want to claim other tax benefits, such as the earned income tax credit, should not use this tool. They should file a regular tax return. For them, the fastest and easiest way to file a return is the Free File system, available only on IRS.gov.

About the advance child tax credit
The expanded and newly-advanceable child tax credit was authorized by the American Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a person's 2020 tax return, including those who use the Non-filer Sign-up tool. If that return has not yet been filed or is still being processed, the IRS will determine the initial payment amounts using the 2019 return or the information entered using the Non-filer tool that was available in 2020.

The payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 through 17.

The IRS will issue these payments by direct deposit if correct banking information has been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment. The dates for the advance child tax credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.

See Advance Child Tax Credit Payments in 2021 on IRS.gov for details on eligibility and more helpful resources.

The IRS asks community groups, non-profits, associations, education organizations and anyone else with connections to people with children to share this critical information about the advance child tax credit as well as other important benefits.


More information:
FAQs on the 2021 Child Tax Credit and Advance Child Tax Credit Payments.


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