Low-Income Families Can Now Register for Child Tax Credit Online

(Bloomberg) -- Low-income families can now apply online to receive a new monthly payout for child tax credits, part of a Biden administration initiative to accelerate distribution of the benefits in an effort to help households meet living costs on a realtime basis.

The Internal Revenue Service launched a portal Monday that allows families who aren’t required to file a tax return -- because their income is too low -- to submit their information to the agency receive monthly advances toward the child tax credit. The benefit was expanded in the March stimulus bill, and the monthly payments start in July.

Qualified people can submit their name, address and Social Security numbers to the IRS to receive their payments. Parents can also submit bank account information to receive the money via direct deposit.

“Our goal is to make sure that every American can get the relief funding they need as simply as possible,” Treasury Secretary Janet Yellen said in a statement. “We know working families can’t put off paying for doctor’s visits or grocery bills, and this new tool will help more people get their tax credit every month.”

Parents who filed a tax return in 2019 or 2020 or submitted information to the IRS last year to register for stimulus payments do not need to take any action to receive their child tax credits, the IRS and Treasury Department said in a statement.

Expanded Benefits

Most families will begin receiving monthly payments automatically next month without any action needed because the IRS already has their information on file, according to the statement.

The $1.9 trillion American Rescue Plan that was enacted in March boosted the total child tax credit to $3,600 for kids five and under, and to $3,000 for children ages six through 17. Families could receive as much as $300 a month for younger children, and up to $250 for older children.

Singles making up to $75,000 or couples making as much as $150,000 will be eligible for the full amounts. Above those income limits, the credit phases out. The IRS said it will start sending the payments July 15.

The IRS is also planning to release additional tools related to the child tax credit in the coming weeks. Among the planned releases will be an updated portal that will allow people to check on the status of their payments and to update their information. The agency is also planning an interactive tool that will tell families if they qualify for the benefit.

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