Low-income Americans can now register for expanded child tax credit

Low-income American families who don't typically file...

Posted: Jun 15, 2021 10:52 AM
Updated: Jun 15, 2021 10:52 AM

Low-income American families who don't typically file tax returns can now register to receive the enhanced child tax credit, which will start going out next month.

The Internal Revenue Service unveiled a sign-up tool on its website Monday that will allow users to provide the necessary information about their households and, if they choose, about their bank accounts so the agency can directly deposit the funds.

Filers can also use the tool to register for the $1,400 stimulus check that Congress approved in March, as well as claim the prior two relief payments. A similar online form existed last year to allow low-income Americans to receive the first round of stimulus checks from the March 2020 rescue package.

The beefed-up child tax credit could cut child poverty by more than half, lifting more than 5 million kids out of poverty, according to experts. But that depends greatly on reaching the poorest families who don't usually submit tax returns. More than 3 million children live in households that could be at risk of missing out, according to separate estimates from the Center on Budget and Policy Priorities and Propel, which runs an app used by a quarter of food stamp recipients.

Most households don't have to do anything to get the child tax credit since the IRS already has their 2020 or 2019 returns. Roughly 39 million households, covering 88% of children, will start receiving the monthly payments on July 15.

Eligible parents will get $300 a month for each child under age 6 and $250 for each one ages 6 to 17. The payments, which will run through the end of the year, will provide families with half the enhanced credit. They can claim the other half on their 2021 tax returns next year.

A second portal, which will be available in coming weeks, will allow families to opt out of receiving the advanced monthly payments, instead collecting the entire expanded credit at tax time. It will also let people check on the status of their monthly payments and update their information.

And the IRS will provide a tool to help families determine whether they qualify for the monthly payments.

Read more: Here's what you need to know about the new stimulus child tax credit

Sending more money to families for 2021

The enhanced credit, which is only in place for 2021, stems from the Democrats' $1.9 trillion coronavirus rescue package.

It gives families up to $3,600 for each child under 6 and $3,000 for each one under age 18. This is up from the existing credit of up to $2,000 per child under age 17. The enhanced portion of the credit will be available for single parents with annual incomes up to $75,000, heads of households earning $112,500 and joint filers making up to $150,000 a year.

The package also makes the tax credit fully refundable so that more low-income parents can take advantage of it. Until now, it has only been partially refundable -- leaving more than 20 million children unable to get the full credit because their families' incomes are too low.

Lawmakers also wanted to make it easier for parents to use the funds to cover their expenses during the year so they are providing half of the enhanced credit in monthly payments.

Democrats in Congress have been pushing the Biden administration to make the beefed up credit permanent, but President Joe Biden's American Families Plan would only continue the increased payments through 2025. The plan would make the credit fully refundable permanently.

The provision is projected to cost roughly $110 billion a year.

West Lafayette
Mostly Cloudy
84° wxIcon
Hi: 86° Lo: 68°
Feels Like: 91°
Kokomo
Cloudy
81° wxIcon
Hi: 85° Lo: 65°
Feels Like: 87°
Rensselaer
Partly Cloudy
84° wxIcon
Hi: 85° Lo: 69°
Feels Like: 88°
Fowler
Partly Cloudy
84° wxIcon
Hi: 86° Lo: 68°
Feels Like: 91°
Williamsport
Mostly Cloudy
84° wxIcon
Hi: 86° Lo: 68°
Feels Like: 91°
Crawfordsville
Partly Cloudy
84° wxIcon
Hi: 85° Lo: 66°
Feels Like: 91°
Frankfort
Mostly Cloudy
84° wxIcon
Hi: 84° Lo: 65°
Feels Like: 91°
Delphi
Mostly Cloudy
85° wxIcon
Hi: 86° Lo: 68°
Feels Like: 91°
Monticello
Partly Cloudy
85° wxIcon
Hi: 89° Lo: 71°
Feels Like: 91°
Logansport
Mostly Cloudy
82° wxIcon
Hi: 85° Lo: 66°
Feels Like: 87°
Intense heat and humidity for the weekend with t'storm chances
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 763688

Reported Deaths: 13963
CountyCasesDeaths
Marion1048591803
Lake567611029
Allen42619698
St. Joseph37234568
Hamilton37098426
Elkhart29678469
Tippecanoe23321230
Vanderburgh23086404
Porter19530327
Johnson18734391
Hendricks17994321
Madison13446345
Clark13429198
Vigo12779255
LaPorte12528224
Monroe12474178
Delaware11087198
Howard10599237
Kosciusko9729123
Hancock8699149
Bartholomew8228157
Warrick8020157
Floyd7961181
Grant7330181
Wayne7221201
Boone7137105
Morgan6878142
Marshall6320116
Dubois6255118
Cass6083111
Dearborn597878
Noble595290
Henry5939111
Jackson514077
Shelby508297
Lawrence4890127
Gibson460596
Montgomery453692
Clinton452355
DeKalb451185
Harrison449476
Whitley413945
Huntington411581
Steuben409560
Miami403773
Jasper399355
Knox387091
Putnam383462
Wabash366983
Adams350456
Ripley350471
Jefferson340386
White338854
Daviess3084100
Wells301981
Greene292085
Decatur291492
Fayette285864
Posey280235
Scott277458
LaGrange276772
Clay272548
Washington252037
Randolph246283
Jennings237549
Spencer237231
Fountain233150
Starke229759
Owen220959
Sullivan218643
Fulton207445
Jay202832
Carroll196122
Orange190556
Perry189039
Vermillion179544
Rush176927
Franklin171635
Tipton171447
Parke153116
Pike140934
Blackford137732
Pulaski122848
Newton122136
Benton108915
Brown105443
Crawford104816
Martin92515
Warren87515
Switzerland8308
Union73510
Ohio58111
Unassigned0428

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events