JUNE 17, 2021
The new Child Tax Credit has the potential to be life-changing, but some Providers users might miss out.
That would be life changing. The money I spend out of pocket on groceries after my food stamps runs out could go towards bills, car maintenance, or maybe I could accumulate some savings.
Starting on July 15, families will begin to receive payments of up to $300 per child under 6 and $250 per child 6 to 18. This expansion of the Child Tax Credit, included in the American Rescue Plan, is groundbreaking--it expands the amount of the Child Tax Credit and eliminates the earned income requirement to receive it. Its delivery is also unique: the new Child Tax Credit will provide half the total credit in advance monthly payments from July to December 2021, and deliver the second half via tax returns next year.
The Child Tax Credit will be a lifeline to low-income families with children after a year of incredible hardship. If it were to be made permanent, the Child Tax Credit would be life-changing. However, we estimate that millions of children in Providers households are at risk of not receiving those monthly payments starting in July.