Here's What You Need to Remember: Take note that under Biden’s stimulus bill, eligible families will be able to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen.
Within the past several weeks, the expanded child tax credits under President Joe Biden’s American Rescue Plan have taken some of the limelight away from the millions of traditional coronavirus stimulus checks that have been sent out.
While many are aware that the payments will start on July 15, there could be some confusion among non-filers—or those individuals who aren’t typically required to file a tax return—on whether they will be eligible for the funds.
Fortunately, it appears that the Internal Revenue Service is already one step ahead. The agency recently announced that it will likely launch two portals by July 1 to help expedite the payments to eligible parents.
It has confirmed that these portals can be used to update and adjust personal financial information, such as bank account and routing numbers, and any changes to child dependents or to opt out of the monthly payments altogether. Keep in mind that those who do opt out could potentially be in line to get a one-time lump sum during the next tax season.
“Eligible taxpayers who do not want to receive an advance payment of the 2021 Child Tax Credit will have the opportunity to decline to receive advance payments. Taxpayers will also have the opportunity to update information about changes in their income, filing status, or the number of qualifying children,” the IRS said.
The agency continued: “Later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information, and make other changes to ensure they are receiving the right amount as quickly as possible.”
The IRS also noted that more than thirty-six million American families will be receiving letters telling them that they may be eligible to receive the monthly credit payments. After that, a second personalized letter will be sent out stating the estimated amount of their monthly checks.
Take note that under Biden’s stimulus bill, eligible families will be able to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen. Therefore, a family headed by a couple earning less than $150,000, or an individual making under $75,000, can now qualify for a $250 or $300 payment each month. In addition, eighteen-year-olds and full-time college students who are aged twenty-four and under can give their parents a one-time $500 payment.
According to the White House, these enhanced credits will target nearly forty million American households and about ninety percent of families with children will get the funds automatically.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn. This article first appeared earlier this year.