ORLANDO, Fla. — The Internal Revenue Service has launched a new online portal to help families who don’t normally file tax returns register to get the upcoming monthly child tax credit payments. 


What You Need To Know

  • The American Rescue Plan Act of 2021 temporarily increases the nation’s child tax credit

  • The IRS now has an online portal to allow people who don't file tax returns to register for the credits

  • Some of the credits will be distributed through monthly payments starting July 15, the IRS says

The American Rescue Plan Act of 2021 temporarily increased the nation’s child tax credit from $2,000 to $3,000 per child older than 5, and $3,600 for each child 5 years old or younger.

The temporary increased benefits will go from July to December. 

The IRS will distribute the credits through a mix of monthly payments — scheduled to begin July 15 —  and 2021 tax return credits.

Not all families will qualify for the full amount of extended benefits. Additional benefits and credits will not be provided to individual filers with an adjusted gross income of $200,000 or more, or joint filers with an adjusted gross income of $400,000 or more.

Credits may also be reduced for people with an adjusted gross income above $75,000 or joint filers with an adjusted gross income of $150,000.

Most families will not need to register to receive the credits.

“Eligible families who already filed or plan to file 2019 or 2020 income tax returns should not use this tool,” the IRS says in a statement on its website. “Once the IRS processes their 2019 or 2020 tax return, the information will be used to determine eligibility and issue advance payments. Families who want to claim other tax benefits, such as the Earned Income Tax Credit for low- and moderate-income families, should not use this tool and instead file a regular tax return. For them, the fastest and easiest way to file a return is the Free File system.” 

The IRS says the new online Non-Filer Sign-Up Tool is intended for families who don’t normally file tax returns. The system will allow those families to register for the monthly payments.

Some may not file annual tax returns, based on income.

Some people should file a 2020 tax return even if they don’t have to for the EIP.

IF your filing status is . . .

AND at the end of 2020 you were

THEN file a return if your gross income was at least .

Single

under 65 / 65 or older

$12,400 / $14,050

Married filing jointly

under 65 (both)

$24,800

 

65 or older (one / both)

$26,100 / $27,400

 

 

 

Married filing separately

any age

$5

Head of household

under 65 / 65 or older

$18,650 / $20,300

Qualifying widow(er)

under 65 / 65 or older

$24,800 / $26,100



2021 Child Tax Credit and Advance Child Tax Credit Payments Q&A
Source: International Revenue Service