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Issue Number: COVID Tax Tip 2021-127
Low-income families still have time to sign up for advance child tax credit payments
It’s not too late for low-income families to sign up for advance child tax credit payments.
The IRS urges anyone who normally isn’t required to file a tax return to explore the tools available on IRS.gov. The Eligibility Assistant can help determine eligibility for the advance child tax credit. The Non-filer Sign-up tool can help people file a simplified tax return to sign up for these payments. Some non-filers may also be eligible for the $1,400 per person Economic Impact Payments and the recovery rebate credit. People can get these benefits, even if they don’t work, have no income or don’t have a permanent address.
For these families, each advance CTC payment is up to $300 per month for each qualifying child under age 6 and up to $250 per month for each child ages 6 through 17.
Payments are generally issued on the 15th of each month through December 2021.
Here are more details and information about how to get the payments:
• The IRS sends advance child tax credit payments to eligible families who filed a 2019 or 2020 income tax return. This includes people who successfully use the Non-filer Sign-up tool for advance CTC, available only on IRS.gov. People can access the Non-filer Sign-up tool or the step-by-step guide for using it on IRS.gov.
• Aside from filing a simplified return from the Non-filer Sign-up tool, families don’t have to do anything else if they are eligible to receive monthly payments.
• The Non-filer Sign-up tool is available until October 15, 2021. Using the tool by 11:59 p.m. ET on any month’s deadline will apply to the next month’s payment.
• Families who receive their first monthly payment in any month after July will still receive their total advance payment for the year. This means that the total payment will be spread over fewer months, rather than six months, making each monthly payment larger.
• The IRS encourages people to request payments by direct deposit, which is faster and more secure than other payment methods. People who don’t have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC’s BankFind tool to locate an FDIC-insured bank.
• Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks.
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Publication 5534-D The 2021 Child Tax Credit: Three Steps to Getting Your Advance Payments (Flyer)
Publication 5534-E Advance Payments of the Child Tax Credit: Which Online Tool Should I Use (Flyer)
Publication 5534-F Advance Child Tax Credit Payments for Americans Experiencing Homelessness (Flyer)