PROVIDENCE, R.I. (WPRI) — Millions of parents will soon get some financial assistance from the federal government.
Roughly 36 million families will start getting advance child tax credit payments on a monthly basis starting July 15, as part of President Biden’s American Rescue Plan.
The government launched new portals to help simplify the process:
- Child Tax Credit Eligibility Assistant: Check whether you qualify for the credit
- Child Tax Credit Update Portal: Review your payments or opt out of advances
- Non-Filers Portal: Provide the IRS with information if you normally aren’t required to file a tax return
The expanded child tax credit increases the $2,000 annual credit a parent would receive to up to $3,600 per child.
Half of that credit is split into six monthly payments and will be distributed through December, while the rest can be claimed on an annual tax return.
Anthony Ricci, a certified public accountant in Warwick, said most people he has talked to think they are receiving these monthly payments and a full child tax refund next year.
“It’s an advance of your money,” he explained. “They are starting halfway through the year, so the other half or the remainder will get reconciled when you file your 2021 tax return.”
Pregnant women can also get money for this year, but may not qualify for the advance, according to Ricci.
“Because the child will be born in 2021, they will qualify for the child tax credit, but may not qualify for the advance of the child care tax credit unless they go on the portal and put that in,” he added.
In an interview on CBS This Morning, CBS News Business Analyst Jill Schlesinger said she wants to remind people that they can still opt out.
“This is important because you’re being asked to be proactive,” she said. “So to opt out, you go to the irs.gov website and there is a form there and you click through it.”
“The only reason you opt out is because you think you make too much money this year to qualify for the credit,” Schlesinger added.
She advised people who are on the bubble and aren’t sure whether or not they qualify to consider opting out.
“That way, next tax season, if you do qualify, you can get that full credit,” Schlesinger said. “It’s better not to get the money this year, because if you do get it and you don’t qualify, you have to pay back that money to Uncle Sam next tax season.”