Here's What You Need to Remember: Parents who are seeking more options regarding receiving their credits should make sure to check out the Child Tax Credit Update Portal.

In only about two weeks, the Internal Revenue Service and the Treasury Department will begin disbursing the much-anticipated expanded child tax credits that were approved under President Joe Biden’s $1.9 trillion American Rescue Plan.

With this in mind, the agencies have been pressing potentially eligible parents to take advantage of newly launched online tools that can help them determine whether they qualify for the new recurring monthly payments.  

Take note that under Biden’s stimulus bill, the federal government will now allow parents to collect as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen. Broken down, this amounts to a $250 or a $300 payment for each child every month through the end of the year. In addition, eighteen-year-old dependents and full-time college students who are under age twenty-four can give their parents a one-time $500 payment.

The first tool that all parents should take time to look at is the Child Tax Credit Eligibility Assistant, which is available exclusively on IRS.gov. It allows parents to answer a series of questions regarding themselves and their family members that will in the end determine whether they indeed qualify for the child tax credits.  

“This new tool provides an important first step to help people understand if they qualify for the Child Tax Credit (CTC), which is especially important for those who don't normally file a tax return,” IRS Commissioner Chuck Rettig said in a press statement.  

“The eligibility assistant works in concert with other features on IRS.gov to help people receive this important credit. The IRS is working hard to deliver the expanded Child Tax Credit, and we will be rolling out additional help for taxpayers in the near future. Where possible, please help us help others by distributing CTC information in your communities,” he continued.

For parents who are seeking more options regarding receiving their credits, they should make sure to check out the Child Tax Credit Update Portal. According to the IRS, this tool will allow them “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.”  

“IRS employees continue to work hard to help people receive this important credit,” Rettig said in a press statement. “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.”  

Another tool that is highly useful for individuals who normally don’t file a federal tax return is the Non-filer Sign-up Tool. The information entered in this portal will assist the IRS to quickly issue the child tax credits.  

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.  

Image: Reuters