June 22, 2021
The IRS launched two new online tools to help manage and monitor the advance monthly payments of Child Tax Credits under the American Rescue Plan. These new tools are in addition to the Non-filer Sign-up Tool, announced last week, which helps families not normally required to file an income tax return to register for the Child Tax Credit.
Child Tax Credit Eligibility Assistant
The Child Tax Credit Eligibility Assistant allows families to answer a series of questions to determine whether they qualify for the advance credit.
Before filing a return or using the Non-filer Sign-up Tool, families unsure of whether they qualify for either the credit or the advance payments can use this tool to help determine if they qualify for the credit and the payments by answering a series of questions.
To check your eligibility, you'll need your tax return filed for 2020, or your 2019 tax return if you haven't filed for 2020. If you don't have your return, you you might be able to estimate the total income from your tax return to answer all the questions by using your filing status and the number of qualifying children you claimed, along with income records such as W-2s and 1099s and the amount of any expenses or adjustments to your income, to make the estimate.
Because the Child Tax Credit Eligibility Assistant requests no personal information such as name, Social Security number, address or bank account numbers, it is not a registration tool, it's an eligibility tool to help an eligible family determine whether they should take the next step and either file an income tax return or register using the Non-filer Sign-up Tool.
Child Tax Credit Update Portal
The Child Tax Credit Update Portal allows families to verify their eligibility for the payments and if they choose to, unenroll, or opt out from receiving the monthly payments so they can receive a lump sum when they file their tax return next year. It is a secure, password-protected tool available to anyone with internet access and a smart phone or computer. Future versions of the tool planned in the summer and fall will allow people to view their payment history, adjust bank account information or mailing addresses, and other features.
Accessing the Update Portal
To access the Child Tax Credit Update Portal, a person must first verify their identity. If a person has an existing IRS username or an ID.me account with a verified identity, they can use those accounts to easily sign in. People without an existing account will be asked to verify their identity with a form of photo identification using ID.me, a trusted third party for the IRS. Identity verification is an important safeguard and will protect your account from identity theft.
Anyone who lacks internet access or otherwise cannot use the online tool may unenroll by contacting the IRS at the phone number included in your outreach letter.
Update Portal allows people to unenroll
Instead of receiving these advance payments, some families may prefer to wait until the end of the year and receive the entire credit as a refund when they file their 2021 return. In the first release of the tool, the Child Tax Credit Update Portal enables families to easily unenroll from receiving monthly payments.
The unenroll feature can also be helpful to any family that no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return. This could happen if, for example:
Their income in 2021 is too high to qualify them for the credit.
Someone else (an ex-spouse or another family member, for example) qualifies to claim their child or children as dependents in 2021.
Their main home was outside of the United States for more than half of 2021.
More features coming to the Update Portal soon
Families will be soon able to use the Child Tax Credit Update Portal to check the status of their payments. In late June, people will be able to update their bank account information for payments starting in August. In early August, a feature is planned that will allow people to update their mailing address. Then, in future updates planned for this summer and fall, they will be able to use this tool for tasks like updating family status and changes in income.
“IRS employees continue to work hard to help people receive this important credit,” IRS Commissioner Chuck Rettig said. “The Update Portal is a key piece among the three new tools now available on IRS.gov to help families understand, register for and monitor these payments. We will be working across the nation with partner groups to share information and help eligible people receive the advance payments.”
The IRS created a special Advance Child Tax Credit 2021 page to provide up-to-date information about the credit and the advance payments.
Resources:
Visit Advance Child Tax Credit Payments in 2021 for up-to-date information on the Child Tax Credit and advance payments