The Child Tax Credit has been expanded!
Happy Child Tax Credit Awareness Day! The Child Tax Credit has been expanded to be more generous and to support more families. Individuals can get $3,600 for each child who is 5 years old or younger and $3,000 for each child who is 6 to 17 years old. People who make up to $75,000 as a single filer, $150,00 as a married couple, or $112,500 as a head of household filer can get the full credit. However, an individual does not have to have any income to get the credit!
Half of the credit can be distributed in monthly, advance payments that begin on July 15 and continue on the 15th of each month until the end of 2021. Families can get $300 per month for each child younger than 5 or $250 per month for each child between 6 to 17. The other half of the credit can be claimed as a refund on a 2021 tax return in 2022 -- and taxpayers can get the whole credit back as a refund even if they don't owe any tax.
If an individual has claimed a child for the Child Tax Credit on their 2019 or 2020 return, they should automatically get the payments -- so long as the child will be younger than 18 on the last day of 2021. If someone has not filed a 2019 or 2020 return, has no reason to do so, and has a child they can claim, they should use the Child Tax Credit Non-Filer Sign-up Tool. If a person hasn't gotten 2020 stimulus payments, they can use this portal to claim these payments as recovery rebate credits; see here: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool.
If someone does not want to receive the advance payments and would rather get the credit entirely as a lump sum refund on a 2021 return, there will be an online portal on the IRS website where individuals can opt out of the advance payments. There will also be another portal on the IRS site where taxpayers can update their family and income information.
In Philadelphia, the Campaign for Working Families and the IRS will be assisting non-filers with 2020 tax prep at outreach events at these times and places:
The Campaign for Working Families
1425 Arch Street Philadelphia, PA, 19130
June 25 and July 9, 10 a.m. to 3:30 p.m. ET
1415 N. Broad Street, Ste 223
June 25 and July 9, 9 a.m. to 2 p.m. ET
IRS TAC William J. Green, Jr. Federal Building
600 Arch St. Philadelphia, PA 19106
June 26 and July 10 10 a.m. to 7 p.m. ET
To learn more about the Child Tax Credit, you can visit www.childtaxcredit.gov or see FAQs on the IRS site here: https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions.
