Money Matters update from Community Action Pioneer Valley:
The IRS has released a new online tool to help families register for Monthly Child Tax Credit Payments. The new Non-filer Sign-up Tool is for parents who did not file an income tax return for 2019 or 2020 and did not use the IRS Non-filers tool last year to register for Economic Impact Payments.
What does this all mean? Eligible families will begin receiving advance payments beginning July 15, 2021, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17. Parents who do not typically file a tax return may need to take action in order to receive these funds.
Encourage parents that you are working with who did not file an income tax return in 2019 or 2020, to the new "Non-filer Sign-up Tool". People who use the tool may enter direct deposit bank information so the IRS can deposit payments. This updated IRS is tool is also meant to help people who normally don't file tax returns to register for the third round of stimulus payments and to receive Recovery Rebate Credit for any of the first two stimulus payments they may have missed. In the near future, the IRS will also be rolling out new tools like a child tax credit eligibility assistant to help families determine their eligibility as well as a child tax credit update portal that will allow them to check on the status of their payments and unenroll if they wish.
Money Matters will be hosting a second hour FCRN presentation on July 22nd to go over all the details of these payments, if you would like to learn more. Please reach out to Rebecca Bannasch or Shannon Martineau at Community Action with any questions that you or your clients have regarding these new payments.
Also you can view an IRS report of the estimated number of eligible children in each zip code that are currently not signed up to receive these payments. Let's do our best to spread the word to help get these funds to the families that need them the most!