In the coming weeks, the IRS will send letters to millions of families specifying the amount each household will receive under the “Child Tax Credit” extension.
Photo: Justin Sullivan / .
Families eligible for monthly payments under the Biden Administration’s “Child Tax Credit” (CTC) extension will receive a second letter from the Internal Revenue Service (IRS) in the coming days confirming that they are creditors of the checks. in advance as of July 15 as a result of the approval of the “American Bailout Plan.”
Missives by post will be sent to eligible families who filed a tax return 2019 or 2020 federals or who used the Non-Filers tool on IRS.gov to sign up for an Economic Impact Payment or stimulus check.
“The letters will confirm your eligibility, the amount of payments you will receive and that payments begin July 15. The families who receive these letters do not need to take any action. The personalized letters follow up on the Child Tax Credit advance payment disclosure letter, sent in early and mid-June, to each family that appeared to qualify for advance payments, ”the agency detailed in a press release. this week on their website.
About three weeks ago, the IRS reported the shipment of some 36 million letters to households informing them of their eligibility to consecutive payments.
As part of the notice, the agency ordered people who want to receive a single payment as a refund in the next tax season to cancel enrollment of advance payments under the CTC through the agency’s website.
Non-filers Sign-up for low-income families to request payments from the IRS
Eligible families who have not received postal communication from the IRS will most likely have to submit their personal and dependent information to the agency using the “Non-filers Sign-up” tool. In many cases, it is a parent or parents who are not required to file low income taxes, so the IRS does not have the necessary information to process shipments.
Through the online service, these people can apply to receive payments.
“This tool, an update to last year’s IRS Non-Filers tool, is also designed to help eligible individuals who do not normally file tax returns sign up for the third round of Economic Impact Payments of $ 1,400 (also known as Stimulus Checks) and claim the Refund Recovery Credit in any amount of the first two rounds of economic impact payments that they have not received, ”said the IRS.
The first installment of the IRS under the extension of the credit that this year grants up to $ 3,600 for each child in the household.
Checks will range from $ 250 to $ 300 per month for each eligible child up to age 17 and will depend on the income levels of the parent (s), if filing jointly.
IRS will disburse 50% of the credit in advance starting July 15
50% of the credit is the one that will be delivered in advance between the months of July and December. The rest of the amount, each family must request it during the next taxable season when filing their 2021 tax return.
Another initiative taken by the IRS to provide guidance on credit and reach a larger number of recipients is the 12-city events that began last weekend and will run through July 10.
Also this week, the tax collecting office reported that it has already updated the Child Tax Credit Update Portal on IRS.gov for users to submit their information for direct deposit and receive advance payments through electronic transfers in their bank accounts.
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