Only three more days until the Julypayments — have you done what’s necessary before the 15th? Between this year and next, will get up to $3,000 for kids between the ages of 6 and 17 and up to $3,600 for children under age 6. Half of the total credit will be split into advance monthly payments through December; the rest will be paid out in 2022.
You can now go online to make sure you’re registered and to update the IRS on your bank details (you won’t be able to change your mailing address, income or number of children until later). An eligibility tool helps families figure out if they qualify. An additional nonfiler tool allows families that don’t normally file taxes to register for the credit. An update portal gives parents the choice tothis year if you prefer a large payout next year instead.
The IRS portals are designed to make the process smooth and to make sure you get the right amount of money (useto check, too). If you’re worried about how the credit could in 2022, the update portal can ease those concerns, and we’ll tell you how. You’ll need personal documents on hand along with our navigation tips to . We make regular updates to this story.
Manage your child tax credit payments and check eligibility
Most families that qualify for the expanded credit don’t need to take any action if they want the advance payments this year. If you already filed a 2019 or 2020 federal income tax return (or used the nonfiler tool in 2020 to register for a stimulus payment), you’ll get the credit automatically. And the credit is nonrefundable, so you don’t need income to get it.
The online tools are useful for a variety of reasons. Here’s how they help parents with eligible dependents:
- The Child Tax Credit Update Portal lets you verify that your family qualifies for the credit and opt out of receiving any payments in 2021. (The next deadline to opt out is Aug. 2.) You can also use it to update your direct deposit information. In the coming months. you’ll use this portal to view your payment history, update your mailing address and inform the IRS on changes in family status, dependents and income.
- A nonfilers’ portal lets you provide the IRS with basic information about yourself and your dependents if you normally aren’t required to file a tax return. The tool is intended to help low-income households register for the payments.
- The Child Tax Credit Eligibility Assistant can help you determine whether you qualify for the advance child tax credit payments.
What other toolkits and resources are available now? The IRS regularly updates its child tax credit FAQ page. White House has launched a website for the child tax credit that provides an FAQ for families, details about eligibility and more downloadable information.
Unenroll from this year’s advance partial monthly checks
The Child Tax Credit Update Portal now lets youthe monthly child tax credit payments. That means that instead of receiving monthly payments of, say, $300 for your 4-year-old, you can wait until filing a 2021 tax return in 2022 to receive the $3,600 lump sum.
To do so, visit the Child Tax Credit Update Portal and tap Manage Advance Payments. You’ll then need to . (You can create one on the page if you don’t have one.)
After you sign in, if you’re eligible, you’ll see an option to opt out of the payments.
You can opt out at any time, but note that you must opt out at least three days before the first Thursday of the month you’re opting out of. At this point, the IRS says unenrolling or opting out is a one-time action — and you won’t be able to opt back in until late September. For the coming July 15 payment, you had to opt out by June 28. The next unenroll deadline is Aug. 2.
You may want to unenroll in the advance monthly payment program because you’re expecting your circumstances to change or if the partial monthly payments will interfere in tax planning. Families that usually owe money to the IRS when they file their taxes may want to instead use the full credit next year. Or you might choose a larger payout if your household is saving for a big expense next year.
Sign up with the nonfiler tool if you don’t file tax returns
The child tax credit Non-filer Sign-up Tool is a way for those who aren’t required to file a tax return to give the tax agency basic information on their dependents. This tool can be used by low-income families that earn too little to have filed a 2020 tax return but that need to notify the IRS of qualifying children born before 2021.
With the nonfiler tool, you’ll be able to electronically file a simple tax form with the IRS with enough information for the agency to determine your family’s eligibility for the advance child tax credit payments. You shouldn’t use this tool if you are required to file a tax return but just haven’t yet. Also, don’t use this tool if you actually filed a 2020 tax return or if you claimed all your dependents on a 2019 return.
To use the tool, families must have a primary residence in the US for more than half the year. To register, parents should have their personal details on hand, including an email address, Social Security numbers for dependents and a bank account routing number.
Heads-up: The IRS recommends using the portal on a laptop or desktop computer, not on a phone. While the tool is not mobile-friendly, according to the Washington Post, you can access it from a browser on your smartphone. In addition to requiring an email address, you need to know your filing status and other tax-related information, which as a nonfiler, you may not have readily available. The tool is also not available in Spanish. (We’ve contacted the IRS about the tool being available in languages other than English.)
The IRS provides some guidance on how to fill out the form as a nonfiler. Note that it can take up to 48 hours for the IRS to confirm your email address — and another 48 hours after submitting your information for the IRS to accept it.
1. To get started, create an account if you don’t yet have one. You’ll need an email address to confirm your information.
2. On the next page — named “Fill Out Your Tax Forms” — enter your information, including your filing status and details about dependents. Because this portal is an update to, you can add information about those payments, called “Recovery Rebate Credit” on the form. Add your banking information to receive your payments electronically instead of in the mail. Tap the Continue to Step 2 button when ready.
3. On this page — named “E-File Your Tax Forms” — you’ll provide your Here’s more on how to do that.) When done, tap the Continue to E-File button to submit your information., and sign the form electronically. (
Use the Eligibility Assistant tool to confirm that you qualify
The new Child Tax Credit Eligibility Assistant allows families to answer a series of questions to quickly determine whether they qualify for the advance credit. This can be helpful for families who haven’t received a letter from the IRS confirming their eligibility.
Update your direct deposit and bank details
Using the Child Tax Credit Update Portal, you can now add your direct deposit information if the IRS doesn’t have it from a recent tax return. The IRS said it will use what it has on file for the first payment on July 15. If the IRS doesn’t have your bank account information, it will send the July check in the mail.
To receive the remaining payments to your account starting in August, add your direct deposit information using the portal by Aug. 2, the IRS said.
Inform the IRS of other changes affecting your family
Later this summer, you’ll be able to indicate changes to any life circumstances since you last filed your taxes, such as a, an or . For example, if you started making more or less money this year, you’ll want to update the IRS about those changes so you can get the .
If you had or will have, it’s important to let the IRS know so you can receive your payment for up to $3,600 for that child. The same applies if you adopted a child or if you gained a new child dependent since you last filed your taxes.
Also, if you’ve gained full custody of your child, you’ll be the parent who receives the money for your kid. Note that parents who have shared custody will not each get a payment. This is important for domestic violence survivors, according to comments during an IRS oversight hearing by Nina Olson, executive director of the Center for Taxpayer Rights. The “change of circumstances portal should allow them to enter their change in marital status and also where the children are,” Olson said.
How to help those without a permanent address
The IRS is urging people to share information about the child tax credit with others who don’t have permanent addresses. By doing this, you’re helping make sure families receive the payments they’re eligible for. You can share information about the online portals and resources with them so they know about the programs to help them file a tax return.
on income requirements and age qualifications for the expanded child tax credit.