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"If we want to continue making progress like this, Congress needs to make it a top priority to extend these monthly payments and to ensure that children in families with the lowest incomes can receive the full credit," said Zippel.Ĭurrently, Democrats are working on writing their $3.5 trillion spending plan, which includes extending the child tax credit among other safety net programs. So far, the enhanced credit and monthly payments are only for the 2021 tax year, meaning the benefit will cease unless extended by Congress. There's still time for those who weren't auto-enrolled through a tax return to sign up for the benefit, including the monthly payments, through the IRS. What's nextįamilies will continue to get the monthly benefit via direct deposit or paper checks through the end of the year. In the same timeframe, the rate of food hardship among white adults with children fell to 7% from 10%, and it declined to 4% from 6% for Asian adults with kids.įamilies with household income below $25,000 were more likely to spend the money on necessities such as food, utilities, clothing, rent or a mortgage or school supplies. The rate of food hardship, or not having enough to eat, declined to 15% from 20% among Black adults with children, to 13% from 21% for Latino adults with children and to 13% from 22% for American Indian, Alaska Native, Native Hawaiian and other Pacific Islander adults with children, according to the latest data. That's been especially beneficial to Black and Latino households, who've been hit hardest by the pandemic, she said. The second half will come when families file their 2021 tax returns next year. The first half of the credit is being delivered in monthly direct deposits through December of $300 for children under 6 and $250 for those aged 6 to 17.
The American Rescue Plan in March expanded the existing child tax credit, adding advance monthly payments and increasing the benefit to $3,000 from $2,000 with a $600 bonus for kids under the age of 6 for the 2021 tax year. 1 reason people want to change careers (and it's not pay) Tax credits could boost refunds for low-income families this year More kids are getting the credit More from Invest in You: How to prevent money disagreements from destroying families The No. "Such a dramatic increase really indicates that we're on the right trajectory in terms of helping provide families with the resources that they need." "The improvement in food hardship among families with children after the child tax credit payments was truly remarkable," said Claire Zippel, senior research analyst at the Center for Budget and Policy Priorities and author of a recent report on the topic. 16, meaning that it reflects the impact of the first payment, which went out in July, and may show some of the benefit from the second payment, which was sent out to families Aug. The latest survey was conducted between Aug.
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