Don't Mess With Taxes

Need help filing a 2020 tax return so you can get Advance Child Tax Credit payments? The IRS and community groups in 12 metro areas are holding events to help you do just that.

In a few weeks, the Internal Revenue Service will start sending out advance payments of the Child Tax Credit. The early credit amounts will go out automatically to taxpayers who, based on their 2019 or 2020 tax filing data in the IRS system, qualify for the family-friendly tax break.

But not everyone who's eligible for the Child Tax Credit, which generally will be $300 a month for each child age 5 or younger and $250 for children ages 6 through 17, had to file a Form 1040 for those years.

In order for them to get the monthly Advance Child Tax Credit (AdvCTC) payments, these eligible families must either provide their information to the IRS using the agency's online Non-filer Sign-up Tool, or they must file a 2020 tax return.

In-person Child Tax Credit filing help: For those who prefer to take the return filing route, the IRS is hosting AdvCTC Free Tax Prep Days and Child Tax Credit outreach events in 12 metropolitan areas.

Volunteers representing local nonprofits, churches, community groups and other organizations will be available at these events to help individuals file 2020 tax returns. IRS personnel will host similar sessions at Taxpayer Assistance Centers (TACs) in the cities.

Below are the locations, dates and times, and groups that will be helping folks with their filings in order to get the AdvCTC payments:

What you need to bring: If you're unsure about whether you qualify for the early tax credit cash, you can check your eligibility by using the IRS' online Advance Child Tax Credit Eligibility Assistant.

If that indicates you do qualify for the AdvCTC and you are not in the tax system, then you need to sign up as soon as possible. Again, you can do that yourself, either by using the non-filer registration tool or by filing a return.

If you opt to file a 2020 return and are comfortable doing that on your own, the IRS recommends you do so electronically so that it will be processed more quickly. If you made $72,000 or less in 2020, you can e-file your return using Free File.

If, however, you want help filing, then head to the AdvCTC Free Tax Prep Day event near you. To make that process as easy as possible, the IRS encourages you to bring the following information:

1. Social Security numbers for your children,
2. Social Security numbers or Tax Identification Numbers (TINs) for yourself and, if married, spouse,
3. Your mailing address,
4. An email address, and
5. Bank account information if you want the AdvCTC payments directly deposited.

Added tax work payoff: Yes, it takes some additional effort to get the Child Tax Credit payments early. But for some, it could make a big difference, especially given three enhancements made to the tax break as part of the American Rescue Plan Act (ARPA), the latest COVID relief plan that became law in March.

First, instead of the usual $2,000 per qualifying child, the total credit for the 2021 tax year is $3,600 for each child younger than 6 and $3,000 for those ages 6 through 17.

Second, the Child Tax Credit also was made fully refundable. As a tax credit, the amount will offset any tax you owe. As a refundable credit, if you have any excess credit left after it erases your tax bill, then you get that amount back as a refund. All of it in 2021. Previously, only a portion of the Child Tax Credit was refundable.

And third, there's the added the advance payment option. Rather than making families wait until 2022 to claim the credit when they file their 2021 tax returns, ARPA authorized the IRS to send half the overall credit amount to eligible taxpayers this year.

The monthly payments, either $300 or $250 depending on the age of the qualifying children, will be distributed on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, an Dec. 15.

Then next year, taxpayers eligible for the Child Tax Credit can claim the remainder of the credit when they file their returns.

But that's months away. Now, if you qualify, want the advance payments, and aren't already in the IRS system, register or file a return.

And if you want face-to-face filing help, then mark your calendar for the AdvCTC Free Tax Prep Day event in your area.

You also might find these items of interest:

• Some Advance Child Tax Credit payments might have to be repaid
• IRS unveils online tool to help nonfilers get advance child tax credit payments
• Advance Child Tax Credit letter going to 36 million; money to follow starting in July
• Free File can help those who don't usually file taxes get COVID payments and more

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