Major Tax Relief for Working Families

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June 17, 2021
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The Child Tax Credit, part of the American Rescue Plan, is here to help families raising children make ends meet. Experts estimate the new Child Tax Credit has the potential to cut child poverty in half.  

  1. The Child Tax Credit provides major tax relief for nearly all working families
    • All working 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 (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.
    • Roughly 39 million households – covering 65 million children (nearly 90% of children in the United States) – will automatically receive the new child tax credit. 
    • Starting on July 15th and through the rest of the calendar year, payments will be monthly (via direct deposit for 80% of families and through the mail for the others) – at $250 per child between 6-17 or $300 per child under 6.
    • The IRS has launched a simplified online tool which will allow families not automatically enrolled in the program to receive the Child Tax Credit – more information at ChildTaxCredit.gov. 

 

  1. President Biden’s American Families Plan calls for extending this for years and years
    • The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why Congressman Davis and President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That’s what the President proposes in his American Families Plan.  

 

  1. Easy sign up for low-income families to cut child poverty in half.
    • Low-income families with children are eligible for this crucial 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, there is a simple, easy tool to sign up for the Child Tax Credit. Learn more at at ChildTaxCredit.gov.