Online registration now available for child tax credit advance payments
The IRS on Monday opened an online site that allows taxpayers who are not required to file a personal income tax return for 2019 or 2020 to register to receive advance child tax credit payments (advance CTC ), which will begin July 15 (see IRS press release IR-2021-129).
The “Registration tool for non-filers for the child tax credit“(CTC tool) on the IRS website is for taxpayers to report eligible children born before 2021 if those taxpayers (1) are not required to file a 2020 tax return, have not filed one and do not intend to do so, and (2) have a primary residence in the United States for more than half of the year.
Taxpayers who meet the first condition can also use the tool to claim the 2020 clawback rebate credit and claim their third economic impact payment.
Taxpayers should not use the tool, advises the IRS, if they meet any of the following conditions:
- You have filed or plan to file a tax return for 2019 or 2020;
- Claimed all of their dependents on a 2019 tax return, including reporting their 2020 information using the “Non-Filers: Enter Payment Information Here” tool;
- were married at the end of 2020, unless they use the CTC tool with their spouse and include their spouse’s information;
- are a resident of a United States territory;
- Not have a principal residence in the United States for more than half of the year and, if married, his spouse does not have a principal residence in the United States for more than half of the year; or
- Not have an eligible child born before 2021 and having a social security number (SSN) issued before May 17, 2021.
Taxpayers using the CTC tool must enter their name; current email address; E-mail adress; Date of Birth; valid SSNs for themselves and their dependents; bank account number, type and routing number; and, if they received an Identity Protection Personal Identification Number (IP PIN) earlier this year, that IP PIN.
Changes to Sec. 24 The American Rescue Plan Act (ARPA) Child Tax Credit, PL 117-2, states that the IRS must make periodic child tax credit advance payments in 2021 to taxpayers until up to the “annual amount of the advance”. These payments – up to $ 300 per month per child under 6 and up to $ 250 per month per child aged 6 to 17 – will be made in equal amounts and made no earlier than July 1, 2021 and at most late December 31st. 2021.
The ARPA, for the 2021 tax year only, increased the amount of the child tax credit to $ 3,000 for each eligible child aged 6 to 17 at the end of the year. 2021 tax year, and $ 3,600 for each eligible child under age 6 at the end of the 2021 tax year. 2021 tax year. ARPA also returned the child tax credit for 2021 fully refundable if the taxpayer (or his or her spouse, in a joint return) has a principal place of residence in the United States for more than half of the 2021 tax year.
The IRS also, in Rev. Proc. 2021-24, clarified how individuals who are not otherwise required to file 2020 returns can claim advance payments of the child tax credit by filing simplified returns or electronically filing a 2020 return with adjusted gross income of zero .
– Paul Bonner (Paul.Bonner@aicpa-cima.com) is a JofA senior editor.