Monday is Child Tax Credit Awareness Day
The Biden-Harris Administration has selected Monday, June 21, as Child Tax Credit Awareness Day. The day will make American families aware of the new monthly payments of $250 to $300 for each child, which is included in the American Rescue Plan to help families make ends meet.
The Child Tax Credit Awareness Day will ensure families are aware about the major tax relief, a $3,000 to $3,600 per child credit, available for nearly all working families. Families will get full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called head of household).
The Child Tax Credit has been expanded to $3,000 per child 6-17 years old and $3,600 per child under 6. It is estimated that 39 million households – nearly 90% of children in the United States – will automatically qualify for the new child tax credit.
Starting July 15 through the rest of the calendar year, payments will be monthly.
These measures will help parents by helping them with the costs of raising children. Experts project these measures could contribute to cutting child poverty in half. They will also help defray the costs of child care, provide more child care options and support return to work for those who have lost their jobs or income — especially mothers. They will do all of this while investing in the future of the nation’s children.
The IRS has launched a simplified online tool which will allow families not automatically enrolled in the program to receive the Child Tax Credit. The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. President Joe Biden’s administration believes Americans should extend the new Child Tax Credit for years and years to come. It is what the president proposes in his American Families Plan.
These credits have been hailed by the Biden administration as a way to give children a lifeline out of poverty. Low-income families with children are eligible for tax relief, including those who have not made enough money to be required to file taxes. If a couple makes under $24,800, a head of household makes under $18,650 or a single filer makes under $12,400, and they have not filed their taxes, it is simple to sign up for the Child Tax Credit.
Learn more at ChildTaxCredit.gov.