The Child Tax Credit Program: Up to $20,000 in Cash to Parents
On June 17th, 2021, the Biden Administration announced the Child Tax Credit (part of the American Rescue Plan) in order to combat child poverty. To be eligible for this program, individuals must file taxes and have income no greater than $50,000. This program gives $3,000 to parents with children between the ages 6–17 and $3,600 to those who have children under the age of 6. The Biden Administration believes that it is a moral imperative to make sure this tax credit reaches parents struggling to take care of their children. In a critical modification not seen before, this programs gives parents who have not filed taxes the ability to receive tax credit through a simple non-tax-filer tool specifically for this child tax credit.
This program has several distinctive features:
- First-time payments will be distributed in monthly $500 increments.
- Parents who have not filed taxes are encouraged to file immediately, since this tax credit program allows them to receive stimulus payments as well. This means that eligible individuals who file taxes for the first time this year can receive up to $20,000 in aid.
Through this innovative and much needed program we may be able to cut child poverty in half.
To spread awareness of the American Rescue Plan, June 21st has been declared Child Tax Credit day.
We encourage the public to spread awareness on this transformative program and help others sign up. For more information on child tax credit please visit https://www.whitehouse.gov/child-tax-credit/ and https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021