For the first time, undocumented immigrants have begun to receive stimulus payments for the $300 Child Tax Credit. Undocumented parents with children who are US citizens can now qualify for this benefit, which was previously unavailable to families with mixed migration status.
While the Child Tax Credit was expanded this year to include low-income families and undocumented parents with children who have Social Security numbers, the IRS said families with parents who have an Individual Taxpayer Identification Number (ITIN) did not receive the first payment in July due to an "issue."
Last month, the families were expected to get both the July and August stimulus checks. According to 19th News, payments totaling $575 million began to be distributed to as many as 1.2 million mixed-status families last week.
Stimulus payments for undocumented immigrants
While some immigrant families have reported receiving these benefits, many have also said that despite meeting all of the eligibility requirements, they were deemed ineligible without explanation.
Problems with their ITINs or bank information, as well as minor errors in their applications, are some of the difficulties that might be impacting their stimulus payments. These families would get a lump sum payment with their tax filing next year if they are finally recognized as eligible for the program.
Other economic pandemic relief measures, like enhanced unemployment or stimulus checks, are not available to these immigrants. Families may sign up for the Child Tax Credit, manage their monthly stimulus payments, and opt-out via the IRS Child Tax Credit webpage. Furthermore, there are other methods for Americans to get government assistance during the pandemic besides the Child Tax Credit, as per The Sun.
Read Also: Two New $1,400 Stimulus Checks Are On Their Way; Are You Eligible for Both Payments?
A new helpful tool to help you sign up
Eligible families may now use a new tool to sign up for the child tax credit if they aren't already getting it. Along with the White House and the US Treasury Department, Code for America released the multilingual, mobile-friendly application.
It's intended to assist certain low-income or no-income families in obtaining increased Child Tax Credits or missing stimulus payments without having to complete a full tax return. Over the year, the Child Tax Credit can pay qualified parents up to $3,600 per child.
Per Charlotte Observer, if parents do not opt-out, the first half of the Child Tax Credit will be paid out in monthly direct installments until the end of the year. The second half can be claimed in 2021 while paying taxes. Families will get a third batch of payments on September 15.
Individuals will receive direct COVID-19 relief payments in three rounds: $1,200 in April 2020, $600 in December 2020, and $1,400 in March 2021. Eligible households can use the new tool to file a "simplified return." To complete the form, they will need a valid Social Security number or Individual Taxpayer Identification Number.
GetCTC is a tool for those who earned less than $12,400 if single and $24,800 if married and filing jointly in 2020, haven't filed a tax return yet, and didn't get the full amount of stimulus payment they were entitled to.
Families can use the IRS's Child Tax Credit Eligibility Assistant tool to see if they are qualified for the credit. Those who do not want early payments and instead want to receive the entire credit upon filing their taxes can opt-out via the Child Tax Credit Update Portal. It may also be used to keep track of banking details.
According to a report released in August by the nonpartisan Center on Budget and Policy Priorities, almost 4 million children are in danger of missing out on Child Tax Credit benefits if their families do not supply the IRS with the information needed to access them.
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