One of the key requirements for families to receive advance checks starting July 15 is that the children in the household must have a valid Social Security number.
If you file taxes with the Internal Revenue Service (IRS) with an ITIN or Individual Taxpayer Identification Number and your children are U.S. citizens you are eligible to receive monthly payments under the Biden Administration’s “Child Tax Credit” extension.
One of the key requirements for families to receive advance checks beginning July 15 and continuing through December is that the children in the household must have a valid Social Security number.
Parents are not required to have a Social Security number, but must have an ITIN to claim the money per eligible child.
The above stipulation is similar to the one the IRS applied to the distribution of the second and third round stimulus checks.
The past two stimulus bills provided that undocumented immigrants married to spouses who have permission to be in the country (mixed immigration status) also receive the funds. Specifically, Americans who filed a joint tax return with a spouse using an Individual Taxpayer Identification Number (ITIN).
The children of these couples, if they have Social Security numbers, were also considered eligible dependents.
Payments under the Child Tax Credit (CTC) will arrive this year in advance under the “American Rescue Plan,” approved last March.
Parents could receive up to $3,600 per child
This time, parents or guardians can receive up to a maximum of $3,600 per child.
The federal government through the IRS will distribute checks of $300 per month for each child under age 6, as well as checks of $250 for each child between the ages of 6 and 17 to eligible families.
IRS will use parents’ tax returns and income to establish monthly amount
The amount per household will also depend on the income reported by the parents on the 2020 or 2019 tax return. The IRS will phase out the payment to zero at certain amounts.
The full credit applies to individuals with children and adjusted gross income of $75,000 or less; $150,000 or less for couples; and $112,500 for single mothers or heads of household.
The phase-out or funding for the credit begins to be reduced for individuals who report higher incomes than the above.
Taxpayers can cancel sending monthly payments
Taxpayers have the option to unsubscribe for the 50% CTC advance this year by making monthly payments through the Child Tax Credit Update Portal.
In case of choosing this alternative, the individual would receive a single payment as a refund when they file their 2021 return.
This may be helpful for any family who no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return.
Another point to consider is that if you do not file a low-income tax return, you should submit your and your dependents’ information as soon as possible through the non-filer tool enabled to claim payments under the CTC.