A few months ago, Congress passed a COVID stimulus plan which entails that any parent with a child under the age of 17, may be qualified for a child tax credit from the IRS. Credit will usually come in form of a direct deposit for a lot of people but the IRS provides tools that can be used online for other people.
The IRS states that, people who did not file for tax return for 2019 or the year 2020 and those who also did not use the IRS Non-filer tool 2020 to register for Economic Impact Payments, are qualified to use this tool. This tool will allow them to give their needed information details, their qualifying children’s age which is 17 and under, and their direct deposit bank information to make it easier and faster for the IRS to deposit the payments directly into their savings account.
The moment the IRS processes their 2019 or 2020 tax returns, eligibility for advance payments will be determined by the details or information provided.
In order for families to earn tax credits and other tax benefits, they should avoid using this tool.
Filing for a regular tax return should be their better option.
Here are some other things you need to know:
- The American Rescue Plan Act, which was legislated in March, expanded and provided a newly-advanceable child tax credit.
- The IRS usually calculates a person’s payment based on his or her tax returns which includes those individuals who use the Non-filer Sign up tool. The IRS will normally determine the initial amount of payment using the information or details entered using the Non-filer tool that was available last year (2020) if the return has not yet been filed or is still processing.
- Each child under the age of 6 will be issued a payment up to $300 every month and a payment of up to $250 every month will be issued for each child from the age of 6 through 17.
- These payments will be issued by direct deposit by the IRS so far as the information or details provided to the IRS is correct.
A lot of families are already signed up for the child tax credits. Whether you signed up or registered with the Non-filer tool in 2020, or you’ve filed for 2019 or 2020 tax returns, you will for sure get the monthly child tax credit automatically without having to sign up or take any other action. In addition to this process, individuals are also eligible to application for recovery rebate credit, also known as stimulus payment. Having at least one qualifying child, earning less than $24,800 as a married couple, you are allowed to use the Non-filer sign up tool provided by the IRS in order to get the child tax credit and get missing stimulus payments.
The list of things needed for you to complete this process include:
- You are required to have or obtain Social Security numbers for your child or children. And also for you and your spouse.
- A reliable mailing address is also required
- You also need an E-mail address
- Your bank account information or details should be given correctly if you are receiving your payment using direct deposit.