America’s national treasury and revenue service will let struggling households claim federal reimbursements more frequently.
A new online tool will help low-income families receive the federal Child Tax Credit without having to wait until they file their tax return.
The U.S. Treasury Department’s and IRS’s Non-filer Sign-up Tool promises to give eligible applicants up to $300 a month per minor under six and up to $250 a month for each child aged between 6 and 17 without waiting to file a tax return.
Most households will receive reimbursements automatically starting from July 15. Only some parents will be required to provide further information about their qualifying children before regularly receiving the monthly payment. This includes applicants who did not file a 2020 tax return and have lived in the United States for more than six months.
The IRS estimates more frequent federal reimbursements will benefit “millions” of families with children.
“This new tool will help more people easily gain access to this important credit, as well as help people who do not normally file a tax return obtain an economic impact payment,” IRS Commissioner Chuck Rettig said in a statement. “We encourage people to review the details about this important new effort.”
The Treasury Department hopes these changes will give much needed relief to every American, especially those impacted by government restrictions to help contain the Chinese Communist Party Virus.
“Our goal is to make sure that every American can get the relief funding they need as simply as possible,” Treasury Secretary Janet Yellen (D) said in a statement. “We know working families cannot put off paying for doctor’s visits or grocery bills, and this new tool will help more people get their tax credit every month, starting in July.”
The IRS is also planning to release more new tools to help families decide whether they are eligible for advance payments and opt-out instead of receiving a lump sum during the New Year. The annual payment is $3,600 for each child under 6 and $3,000 for each child aged between 6 and 17.
The full amount will also be available to eligible widows and widowers, as well as married taxpayers who made less than $150,000 in 2020 and filed jointly. Full payments will also be made to eligible household heads earning up to $112,500 a year and individuals who annually earn up to $75,000.
President Joe Biden tried to have the monthly payment plan extended until the year 2025. However, fellow Democratic lawmakers only want the payments to be processed monthly.