The American Rescue Plan Act made several changes to Child Tax Credit eligibility requirements and amounts. As a part of the Act, the IRS will pay eligible taxpayers half of their estimated 2021 Child Tax Credit in advance monthly payments beginning in July, 2021.
Who should use the Non-Filer Sign-Up Tool?
The IRS has launched their Child Tax Credit Non-filer Sign-up Tool for taxpayers to report their qualifying children born before 2021 and who also:
- Are not required to file a 2020 tax return, didn’t file one and don’t plan to; and
- Have a main home in the United States for more than half of the year.
Also, if a taxpayer did not get the full amounts of the first and second Economic Impact Payment, they may use this tool if they:
- Are not required to file a 2020 tax return, didn’t file and don’t plan to, and
- Want to claim the 2020 Recovery Rebate Credit and get the third Economic Impact Payment.
The IRS will determine a taxpayer's eligibility and issue advance payments based on the information given to them through the Non-filer Sign-up tool. If the taxpayer is eligible to receive advance payments for the Child Tax Credit, no further action is needed.
Who should not use the Non-Filer Sign-Up Tool?
Taxpayers should NOT use the Non-filer Sign-Up Tool if they:
- Filed or plan to file a 2020 tax return; or
- Claimed all their dependents on a 2019 tax return, including by reporting their information in 2020 using the Non-Filers: Enter Payment Info Here tool; or
- Were married at the end of 2020 unless they use the tool with their spouse and include their spouse’s information; or
- Are a resident of a U.S. territory; or
- Do not have a main home in the United States for more than half the year and, if they are married, their spouse does not have a main home in the United States for more than half the year; or
- Do not have a qualifying child who was born before 2021 and had a Social Security number issued before May 17, 2021.