This is how you receive the monthly tax credit for children if you do not have a permanent address

A young child wearing a mask sits on his father’s shoulders outside Lenox Health Greenwich Village Hospital during the nightly cheers for medical workers and key workers on May 29, 2020 in New York City.

Alexi Rosenfeld

Homeless families or those who are between permanent addresses can still receive the new extended child tax credit.

It could mean hundreds of dollars a month for families struggling to stay in stable housing.

Homelessness spiked during the coronavirus pandemic and the economic recession that followed, and more Americans may soon face housing problems as eviction bans and moratoriums are lifted. According to a May study by LendingTree’s QuoteWizard, nearly 25% of people are concerned about eviction or foreclosure in the coming months.

According to a recent report by the nonprofit Children’s Defense Fund, 33% of the homeless in the United States live with families with children.

For these families, the child tax credit set out in the American Rescue Plan could be of great help. In 2021, the maximum balance is $ 3,600 for children under 6 years old and $ 3,000 for children 6-17 years of age. Fund will be sent to most families in monthly installments starting July 15 – payments are $ 300 per month for children under 6 and $ 250 per month for those ages 6-17.

Here is what homeless families need to know about getting the loan.

Can I still file a tax return for 2020 after the deadline has expired?

The key to receiving the child tax credit and upcoming monthly payments is filing a 2020 tax return.

You can file a 2020 response to the IRS even though it’s after May 17th. If you don’t owe money to the IRS – which is likely for the lowest-income Americans – you won’t receive a late filing penalty and will be able to get the full refund you are entitled to.

There are a few ways people can file for free, including through the IRS Free File program (when adjusted gross income is less than $ 72,000) or through other online platforms like Credit Karma. The IRS VITA program, which provides free tax preparation and filing assistance to low-income Americans who do not speak English and seniors, has locations for drop-in services through June.

In addition, the IRS is launching at least two portals for the new expanded tax credit for children. One of these may include an option for non-applicants to file a simplified tax return or otherwise provide the agency with their information to apply for the tax credit.

What if I don’t have a permanent address?

Many homeless people may struggle to provide a permanent address in order to receive a check or debit card.

If you don’t have a permanent address, the easiest way to ensure you receive your upcoming monthly child tax credits is to file your taxes with direct deposit information and submit your refund that way. If you have already done so, there is no need to take any further action with the IRS. Payments begin on July 15th and are deposited into your bank account monthly through December.

Next year, you’ll need to file your taxes for 2021 to get the remaining half of the balance and you can get your refund again through direct deposit.

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What if i don’t have a bank account?

Some people may also be without a bank account, which adds to the difficulty of getting the payments owed.

When filing your 2020 taxes, you can provide an alternate address if the IRS does not state you have a permanent address. This address can be that of a friend or relative, a trusted service provider such as an animal shelter, daycare center, or a transitional housing program.

This is where the IRS sends your refund as well as the future monthly child tax credits. Payments are made either by check or debit card, according to the IRS.

It is currently unclear how the IRS will determine who will receive a check and who will receive a debit card. The hope, however, is that those who don’t have bank details can get a debit card that is reloadable, much like some social security benefits are sent, said Elaine Maag, a research fellow at the Urban-Brookings Tax Policy Center.

“You wouldn’t need a bank to cash the check, which can be very expensive if you didn’t have a bank, and you wouldn’t need a bank to make a direct deposit,” she said.

What if something changes between July and December?

The IRS has announced that it will launch a number of products to help people with child tax credit, including the ability to update information and opt out of receiving monthly prepayments.

This will likely include places where people can keep the IRS updated on changes in their household, such as: B. a new baby who is entitled to a monthly payment. It can also include a place for people to update their banking information or address.

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