Roxy Caines Get it Back Campaign Director Christine Tran Helping Families Get Outreach Intern Stimulus & Child Tax Credit Center on Budget & Payments Policy Priorities What to Know & How to Help www.eitcoutreach.org June 15, 2021 Center on Nonpartisan research and policy institute Budget and We pursue federal and state policies designed both to reduce poverty and inequality in Policy equitable and effective ways. Priorities www.cbpp.org National effort to connect eligible workers to tax benefits Get It Back Promote the Earned Income Tax Credit, the Child Tax Credit, free tax preparation, and other tax Campaign benefits Work with a network of diverse partners www.eitcoutreach.org Background Importance of Outreach Stimulus Payments & CTC Basics Today The Portals How to Help Troubleshooting Q&A Check-in Question Please respond to the following question in the chat: Where are you joining from? Background The American Rescue Plan • Temporarily extends the CTC for Tax Year 2021 o Reduces child poverty by 45% o Larger reductions for Black, Hispanic, & Native American children o Children in deep poverty • Includes advance payments starting in July 2021 • 3rd round of stimulus checks with expanded eligibility requirements Why is Outreach Important? Why is Stimulus Check Outreach Needed Now? • About 8 million eligible families still haven’t received the first stimulus check, according to the U.S. Treasury (January 2021) • People can now qualify for three rounds of payments even if they do not have income: First stimulus: $1,200 Second stimulus: $ 600 Third stimulus: + $1,400 $3,200 • You must file a tax return to get the payments Why is Child Tax Credit Outreach Needed Now? • 88% of children (65 million children) in 39 million households will automatically get the advance payments, according to the IRS • The remaining 12% of children include families who are: o Very low-income, earn less than $2,500 o Non-filers (people who aren’t normally required to file taxes) o Didn’t receive stimulus payments o Likely to participate in SNAP o New parents • VITA sites are swamped and at low-capacity Trusted Partners Are Essential for Outreach 1. Know the community 2. Have an established relationship 3. Connect clients to the CTC Stimulus Payments Basics What’s Different about Eligibility for the Third Stimulus Checks? • Expanded Taxpayer Identification Number requirements allow more families with immigrants to qualify o 2.2 million children who were previously left out of payments are now eligible • All dependents, regardless of age, qualify for an additional payment of $1,400 What’s Different about Eligibility for the Third Stimulus Checks? First and Second Stimulus Check Third Stimulus Check Non-Military Family If one spouse doesn’t have an Any family member or SSN, the spouse with an SSN dependent with an SSN or and qualifying children with an ATIN can get the stimulus. SSN or ATIN can get the Dependents (any age) with stimulus. SSNs or ATINs still qualify for Children (under 17) can only the stimulus even if their get the stimulus if at least one parents don’t have SSNs. parent has an SSN. Military Family If one spouse doesn’t have an If one spouse doesn’t have an SSN, both spouses SSN, both spouses can receive the stimulus can receive the stimulus (including the spouse without (including the spouse without an SSN). Qualifying children an SSN). Dependents (any (under 17) with an SSN or age) with an SSN or ATIN also ATIN can also get the qualify for the stimulus. stimulus. www.eitcoutreach.org/blog/what-to-know-about-the-third-stimulus-checks Child Tax Credit Basics What’s New About the CTC? 1. Expanded age limit 2. Increased credit amount 3. Fully refundable 4. No income requirement 5. Advance payments 6. Lower phase-out rate CTC Comparison $2,000 CTC (current) Expanded CTC (new) Age of Children age 16 and under can qualify for the Children age 17 and under can qualify for the child credit credit Credit $2,000 per child $3,000 per child and $3,600 for children under the Amount age of 6 Refund Up to $1,400 per child is refundable Fully refundable Amount Income You must have earned income more than $2,500 No income requirement, you can have zero to qualify for the refundable part of the credit income and still qualify for the full credit amount per child Advance No advance payments Monthly advance payments between July to Payments December 2021 Phase Out The CTC amount starts to decrease at $200,000 The CTC amount starts to decrease at $75,000 for Rate for single filers and heads of households single filers ($150,000 for married couples and ($400,000 for married couples) $112,500 for heads of households) https://www.eitcoutreach.org/tax-credits/child-tax-credit/whats-new-about- the-child-tax-credit-in-2021/ Calculating the CTC • Propel is creating a calculator o ChildTaxCredit.com o Site will be live this month • Kiplinger’s 2021 Child Tax Credit Calculator Eligibility Who is Eligible for the CTC? 1. No income requirement 2. Parent or caregiver must have an SSN or ITIN 3. Qualifying child o Relationship o Age must be 17 or under on Dec 31, 2021 o Residency o SSN o Dependent Getting Advance CTC Payments NO ACTION REQUIRED IF: ACTION REQUIRED IF: • Filed a 2019 or 2020 tax return • Didn’t file a 2019 or 2020 tax return or • Used the 2020 IRS Non-filer Tool • Didn’t receive stimulus payments to receive stimulus payments MUST SUBMIT INFO TO IRS: o Use the IRS Non-Filer Portal if not required to file taxes o File a 2020 tax return if required to file taxes Advance payments will be delivered through direct deposit, debit card, or paper check (If someone received their stimulus checks as direct deposit, they'll likely receive advance payments in the same way) The Portals IRS Non-Filer Portal What We Know What We Don't Know • Register for advance payments • IRS guidance available on using the o Submit information about kids and their portal ages • Claim stimulus checks • Do not need specific documents to use • You don’t have to submit bank account information or a permanent address Child Tax Credit Update Portal (CTC UP) What We Know What We Don't Know • Opt-out of advance payments • Date when additional portal features will be available • Eventually, people will be able to update life changes • Resolution for children claimed by more o Income than one person o Marital status o # of children o Bank account • Safe harbor protection to prevent over payment • Identity Verification through ID.me How to Help Spread the Word! 1. Send informational mailers using your organization’s contact list 2. Display flyers in your organization’s office and distribute them to clients you interact with 3. Contact clients via email or text about the CTC advance payments 4. Post on your organization’s social media channels about the CTC and how to get advance payments Help People Submit their Information to the IRS to get Advance Payments 1. Help people assess what they need to do • Non-filer portal vs. file a tax return 2. Assist people to use the Non-Filer portal 3. Support people with tax filing through GetYourRefund.org or MyFreeTaxes.com 4. Partner with Code for America to become a Navigator to help people use GetYourRefund.org Troubleshooting Challenges You May See & What You Can Do The Digital Divide • Challenge: people may lack access to technology or have challenges using it Opportunity: o Provide tech assistance to fill out the form o Provide tech like computers or iPads • Challenge: lack email address Opportunity: o Help create email accounts ▪ 10minuteemail.com or Guerillamail.com • Challenge: lack permanent address Opportunity: o Offer your org's address ▪ Become an IRS Trusted Partner o Help people connect to a banking product Challenges You May See & What You Can Do Mixed-Status Families • Challenge: immigrants are concerned about whether tax filing will put their families in harm Opportunity: o Reassure families: ▪ IRS cannot share info with ICE ▪ Tax filing doesn’t impact immigration status • Challenge: people need to apply for or renew their ITIN Opportunity: o Help people renew or apply for an ITIN o Expect delays Challenges You May See & What You Can Do Complex Family Situations • Challenge: multiple people may appear eligible to claim a child for the CTC (DV, shared custody, child changes households) Opportunity: o Help people to file a 2020 tax return or use CTC UP o Refer them to a Low-Income Taxpayer Clinic Predatory Practices & Scams • Challenge: people are creative when it comes to money Opportunity: o Stay alert and communicate with NNEDV o Visit IRS website and www.fraud.org Resources Toolkit for Stimulus Check Outreach to Immigrant Families eitcoutreach.org/coronavirus Not just for reaching immigrants! Toolkit for Stimulus Check Outreach to Immigrant Families • Media guide • Sample flyer – customizable and in 6 languages (English, Spanish, Chinese, Arabic, Vietnamese, French) • Talking points for media • Social media graphics – customizable, • Press release template sized for Twitter/Facebook/Instagram and in 6 • Sample media pitch languages • Social media language • Sample radio PSA script • Sample text message • Sample email CTC Resources CTC FAQs: What's New about the Child Tax Credit in 2021 CTC OUTREACH MATERIALS: • Customizable social media templates • Phone scripts and text scripts • Flyers • Templates RESOURCES: • Guides and trainings on using the portals 2021 Stimulus Checks and Tax Credit Outreach Resources Government Resources IRS: Advance Child Tax Credit Payments in 2021 NON-FILER PORTAL: Child Tax Credit Non-filer Sign-up Tool WHITE HOUSE: www.ChildTaxCredit.gov Stay Connected! Get It Back Campaign Center on Budget and Policy Priorities [email protected] (202) 408-1080 www.eitcoutreach.org http://eepurl.com/gdIHn1 Poll Time How are you likely to engage CTC outreach efforts? Questions? 41.