President Joe Biden signed landmark legislation earlier this year that dramatically expands the Child Tax Credit. The Child Tax Credit, included in the American Rescue Plan, increases benefits to about 90 percent of families with children, and helps families with the lowest incomes for the first time—cutting childhood poverty nearly in half.
This historic effort provides much-needed relief, particularly for families who have been falling through the cracks for decades.
Starting July 15, most families with children will receive between $250 – $300 a month per child automatically in their bank accounts or mailed to them —if they filed a tax return in the past two years. But if they didn’t earn enough to have to file a tax form, they’ll have to sign up to get this extremely important help.1
What do you need to do to sign up for the expanded tax credit?
• It’s not too late to sign up for Child Tax Credit payments. And most families are already signed up. (If you’ve filed tax returns for 2019 or 2020, or if you signed up with the Non-Filer tool last year to receive a stimulus check from the Internal Revenue Service, you will get the monthly Child Tax Credit automatically. You do not need to sign up or take any action.)
• Even better, if you haven’t received any of the stimulus payments sent out earlier, by signing up you’ll get those as well. Note: these payments do not count as income. So, signing up won’t affect your eligibility for other federal benefits like SNAP and WIC.2
Who is eligible?
• For those with children, the American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child over the age of six and from $2,000 to $3,600 for children under the age of six, and now covers 17-year-olds. All families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent.
While the new Child Tax Credit enacted in the American Rescue Plan will make a tremendous difference in the lives of tens of millions of American families, the benefits are currently only enacted for this year. So, in addition to ensuring that everyone will be able to receive this essential credit, CHN is building a movement to fight to make this Child Tax Credit expansion permanent.
Thank you for all you do to demand accountability from our political leaders to fight for our shared priorities.
Executive Director, Coalition on Human Needs
Coalition on Human Needs
1825 K Street NW, Suite 411
Washington, DC 20006
PAID FOR BY THE COALITION ON HUMAN NEEDS