Reuters: Millions receive first child tax credit payments
From Reuters: 39 million U.S. households will be issued monthly federal checks started Thursday as part of a massive expansion of the child tax credit. The Center on Poverty and Social Policy at Columbia University estimates that the expansion can lift 5 million children out of poverty and reduce the U.S. child poverty rate by up to 45%.
The approach is notable both for its wide reach – the checks issued this week will reach nearly 90% of U.S. children, according to Internal Revenue Service estimates – and for distributing half the money monthly instead of in one lump at tax time.
The program, which is not limited to low-income families, is being likened to a universal basic income for children. Single parents earning up to $75,000 and couples making up to $150,000 can receive the full credit.
Under changes made by the American Rescue Plan passed in March, families will receive up to $3,600 for every child under age 6 and $3,000 for those ages 6 to 17, up from $2,000 per child. A minimum income requirement was removed and the credit was made fully refundable, making it more accessible to parents who don’t work and those with low tax bills.
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Tags: Childcare, Childcare Resource and Referral