This year’s extended child tax credit benefit is running out and as such families have limited time to claim as GetCTC.org will only be available until November 15.
As a result of a partnership between Code for America and the Treasury Department, the site was developed for families who have children who are eligible for the credit but did not receive it automatically this year, usually because they cannot file an income tax return.
“If parents haven’t already gotten the payment and they’re eligible for it, it’s not too late to sign up,” said Ashley Burnside, a policy analyst at the Center for Law and Social Policy.
There Will Be a Substantial December Check
If you sign up for the credit now, you’ll be able to receive the complete first half of the credit in December, so you will receive a large check this year.
This is because the payments are in advance of the 2021 tax credits, of which half will be paid out by the end of this year and the rest will be paid out next year when families file their taxes.
In March, Congress passed the American Rescue Plan, which expanded the current child tax credit, including advance payments and raising the compensation to $3,000 from $2,000, plus a $600 bonus for kids under 6 for the tax year 2021.
For a family with two children aged 5 and 7, they would receive a maximum of $6,600 (i.e. $3,600 for the 7-year-old and $3,600 for the 5-year-old equalling $6,600).
In most cases, the family received the first $3,300 of the credit in six payments of $550 from July through December if they filed a tax return in 2019 or 2020 and had direct deposit.
But if a family doesn’t normally file taxes due to their low income, then they will need to sign up in order to receive the payments monthly.
So, even if a family misses their July payment, they would still receive $3,300 by the end of the year if they signed up in August.
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Why You Should Sign Up Now
There is no question when a family does not sign up for the new child tax credit this year, or if they miss out on advance payments.
However, they still have the option of claiming a lump sum when they file for a tax return next year.
Moreso, so long as the money isn’t received right away, they may still receive it, but they have to deal with IRS delays.
Experts recommend that all parents with eligible children sign up as soon as possible unless they know their family will elect to not participate and receive the money in a lump sum next year.
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“We would hate for money to be left on the table when people are hungry when people have housing insecurities, food insecurities,” Rolley stated, the senior vice president of the Rockefeller Foundation’s U.S. equity and economic opportunity initiative.
The enhanced child tax credit may not be available for much longer, so now may be the best time for families to claim the money.
Meanwhile, as lawmakers continue to negotiate President Biden’s Build Back Better plan, Democrats are trying to make the credit available for one more year.