Starting in July 2021 over 80 million American households become eligible to receive a new payment from the Internal Revenue Service. An increased child tax credit has allowed for monthly payments of $300 per child aged 5 and under, and $250 for each child aged between 6 and 17 to be sent as advances for the Child Credits found on next year’s (2021) Federal Income Tax return.
This program is:
Automatic. If Child Credits have appeared on prior tax returns, the taxpayers will begin receiving payments automatically starting July 15. Six monthly payments will be received, with the last arriving on December 15.
Not just for low-income taxpayers. The “phase outs” for high income extend through $400,000 for married couples and $200,000 for single parents.
For example, a family of 5, with children aged 12, 10, and 4 will receive $800 per month for 6 months, a total of $4,800 before filing their 2021 taxes.
This program will impact over 60% of American households. For individuals who prefer to leave their tax situation unchanged, they may opt out of these payments at Child Tax Credit Update Portal | Internal Revenue Service (irs.gov). Other changes, like mailing address changes may be entered there as well.
Church Benevolence Committees: Take Notice!
In the author’s opinion, this is a call to action for church benevolence committees around America.
Some Americans have not filed tax returns and will need to get registered with IRS to receive these payments. Others have moved and the IRS has incorrect addresses. Benevolence committees can assist church members and others in the community at large who needs to register for these payments by sending them to this IRS website.
Churches with programs serving lower income and homeless individuals can add a registration service to their programs. After all, it is the lower income and homeless populations who suffer from the “digital divide” and lack access to the internet. The IRS has been criticized over its poor website implementation of this program. Offering this service to the community at large is a practical service in which the church can be both the heart and hands of Jesus to those needing these payments from the Federal Government.
Wisdom advises to watch for continuing guidance from the IRS about this program.
