Monthly payments of the expanded Child Tax Credit now available for families
This week, many families began receiving monthly payments of the Child Tax Credit, which was expanded through the American Rescue Plan for one year. The expanded Child Tax Credit will provide $300 per month for each child under the age of six, as well as $250 per month for each child age ages six to 17. The improvements to the Child Tax Credit are expected to cut child poverty in our country in half. The Earned Income Tax Credit and the Child Tax Credit together will now lift more kids out of poverty than any other current programs.
More families than ever are now able to benefit from the Child Tax Credit, including those facing the greatest barriers to financial security. For families who filed tax returns for 2020 or 2019 or signed up with the IRS to receive federal stimulus payments last year, the Child Tax Credit payments will be deposited directly or sent as a check by mail. Families who did not have to file tax returns can sign up to receive the Child Tax Credit payments through the IRS Non-filer Sign-up Tool. Families and advocates can access more information and answers to frequently asked questions here. We have heard that some folks have struggled to use the Non-filer Sign-up Tool and we encourage you to offer support to your community members in getting signed up for this critically important benefit.
The Child Tax Credit places money directly back into families’ pockets, which helps with necessities like housing, food, and clothing. We know that additional money in families’ pockets has long-lasting positive impacts on child outcomes, especially when children are young. One study showed that boosting the income of families with young children by $3,000 per year is associated with a variety of improved outcomes in adulthood for the kids in those families. These outcomes included increased adult earnings, increased hours worked as adults, and increased scores on the SAT.
The improvements to the Child Tax Credit are only temporary, and it is critical for Congress to act now and make the expansion permanent. Policies like the Child Tax Credit help support the well-being of kids both now and down the road. Furthermore, these policies exemplify our collective commitment to providing the best chance for every kid to thrive, and actively demonstrate our values of equity for every Colorado family.