Families that don’t normally file a tax return will need to pay close attention to a new online tool from the IRS.
A special online tool is now available to help eligible families who don’t normally file a tax return register for the monthly child tax credit advance payments that are scheduled to kick off July 15. The tool can be found on the IRS site at irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool.
Eligible families will receive up to $300 per month for each qualifying child age 5 and younger. The monthly payout is up to $250 per month for each qualifying child ages 6 to 17.
Monthly payments will be sent from July through December to cover half of the total credit amount in advance this year. Taxpayers would claim the other half of the available credit when filing their 2021 federal income tax return next year.
The IRS said: “The non-filer sign-up tool is for people who did not file a tax return for 2019 or 2020 and who did not use the IRS non-filers tool last year to register for Economic Impact Payments.”
Often, the IRS said, these are individuals and families who receive little or no income, including those experiencing homelessness and other underserved groups. This new tool is available only on IRS.gov.
You’d use this tool to give the IRS basic information — including name, address and Social Security numbers. And you’d provide information about how many children you have ages 17 and younger and your direct deposit information so the IRS can quickly send the money.
This same tool also can help eligible individuals who don’t normally file income tax returns register for the $1,400 third round of Economic Impact Payments, more commonly known as stimulus checks. You’d also be able to claim the Recovery Rebate Credit for any amount of the first two rounds of Economic Impact Payments that might have been missed.
The IRS said the tool was developed in partnership with Intuit.
The IRS notes: Eligible families who already filed or plan to file 2019 or 2020 income tax returns should not use this non-filer tool.
“Once the IRS processes their 2019 or 2020 tax return, the information will be used to determine eligibility and issue advance payments,” the IRS said.
The IRS is warning consumers to watch out for scams relating to the advance payments. The only way to get this money is to file a tax return or use the non-filer tool at IRS.gov.
“Watch out for scams using email, phone calls or texts related to the payments,” the IRS said.
“The IRS never sends unsolicited electronic communications asking anyone to open attachments or visit a non-governmental website.”