Even families that don’t normally file taxes could be eligible for the advance child tax credit payments this year.
Sarah Tew/CNET
There’s good news for non-tax filer parents. The IRS has made it easier for them to get their advance child tax credit payment on July 15, even if they didn’t file taxes this year or last year — or don’t plan to anytime soon. Families that already filed a one-time tax return with the IRS before the May 17 tax deadline and meet the eligibility requirements will be automatically enrolled in the enhanced child tax credit program.
Nonfilers could still be eligible but just need to take a couple extra steps to get enrolled. On Monday, the IRS launched its new nonfiler sign-up tool to ensure that parents can get the right amount for the credit. The tool is useful in other ways: it helps people who don’t normally file taxes also register for their third stimulus payment or claim a recovery rebate credit for missing stimulus money.
The amount that eligible families with qualifying children will receive for the expanded child tax credit depends on income, as well as the ages and number of dependents (we recommend calculating your total here). We can explain the online tools, including how you can use the upcoming IRS portals to opt out of the advance monthly payments. This story was recently updated with new information.
Use the new sign-up tool to update your personal details
On June 14, the IRS launched a new online tool to help families that don’t normally file income tax return to enroll in this year’s child tax credit program. The free “Non-filer Sign-up tool” is designed to allow low-income families, as well as those experiencing homelessness, to register with their name, address and Social Security numbers. Individuals will be able to notify the IRS about any of their qualifying dependents and can provide their bank information for direct deposit of the payments once they start.
The tool isn’t for families who already filed — or plan to file — their 2019 or 2020 income tax return. Those tax returns will be used to determine eligibility and disburse the coming payments to qualifying families.
Access the upcoming IRS portals to help determine eligibility and check status
This month, the IRS will make a portal available specifically dedicated to tax nonfilers, such as individuals who don’t have a tax return from the last two years on file with the IRS, didn’t already use a nonfiler portal or are below the tax return filing income bracket. The portal is expected to allow tax nonfilers to easily let the IRS know how many kids they have and their ages — including babies born in 2020 and 2021 — so they can get the correct payment amount.
A second portal will also be available to help families who already had their 2019 or 2020 tax return processed but who need to inform the IRS of any life changes, such as an income change. It will also let families defer the monthly payments altogether if they’d rather receive one large payment next year.
Watch this:
Child tax credit: Everything we know
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Review your details on the IRS payment portal
If you received a stimulus payment and you’re a nonfiler, your information should be on file with the IRS already. So while you wait for the IRS portals to open, you can check to see if your information is updated on the stimulus payment portal, called Get My Payment.
The IRS website also allows you to set up an account if you haven’t already, which is useful for reviewing your tax transcript and other details. If you notice some information is off — maybe you got married or gained a new dependent — you’ll need to make sure the IRS has that information by using the child tax portals when they open.
The tax deadline has passed, but you can still file your taxes.
Sarah Tew/CNET
Or … file your 2020 tax return now
The IRS is urging people with children to submit their taxes as soon as possible to make sure they get the right amount of child tax credit money. Even though the tax deadline was May 17, nonfilers shouldn’t face penalties since they don’t owe taxes. But do note the IRS typically doesn’t accept direct deposit information if the filer doesn’t have a refund coming when submitting a tax return.
While the IRS encourages families to file their 2020 tax return, the new nonfiler tool should allow many to get their information registered in the system, including direct deposit details.
For more information about the child tax credit, here’s what you should know about the upcoming IRS letters.