One of the online portals to be opened by the IRS on July 1 will allow this population to submit updated family status information and include the number of dependents under their care.
Parents who do not file taxes with the Internal Revenue Service (IRS) because their income is too low will also be able to apply for the monthly “Child Tax Credit” extension checks that will begin to be mailed on July 15.
One of the online portals that the agency is preparing to open on July 1 is precisely for potential beneficiaries who do not file taxes to enter their personal information in order to obtain the refund for the credit.
Up to $3,600 per child under 6 years of age
Under the Biden Administration’s “American Rescue Plan” passed in the U.S. Congress, parents can get up to $3,600 per child under age 6 claimed as a dependent.
Scope of portals to be launched by the IRS on July 1
A CNET report on Tuesday states that the online tool will allow individuals who do not file taxes but have children to submit updated family status information and include the number of dependents.
Through the other portal, families who wish to do so can request the IRS to send them the money they are entitled to in one lump sum and not in monthly installments as the government plans to do.
In this case, applicants will have to wait until next year to receive the funds.
If they prefer to receive the money in monthly payments, the IRS will process checks to recipients in seven mailings between July and December.
The “Child Tax Credit” money transfers will be made on the 15th of each month.
Each deposit or check mailing is expected to be made on the 15th of each month.
“The IRS and Treasury also announced that increased CTC payments will be made on the 15th of each month, unless the 15th is a weekend or holiday. Families receiving the credit through direct deposit can plan their budgets around receiving the benefit. Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 or older,” the agency said in a statement May 17.
Under the third stimulus bill passed last March, the maximum Child Tax Credit was increased in 2021 to $3,600 for children under age 6 and to $3,000 per child between the ages of 6 and 17. “The American Rescue Plan is projected to lift more than five million children out of poverty this year, cutting child poverty by more than half,” the IRS said.
The IRS estimates that approximately 39 million households, covering 88% of children in the United States, would receive monthly payments with no further action required.
For income eligibility, the IRS will apply the same guidelines as those used to calculate the amount per third stimulus check.