Expanded Child Tax Credit Payments Start Landing in Bank Accounts Tomorrow
Chairman of Subcommittee on Taxation and IRS Oversight highlights historic changes to CTC that will help hundreds of thousands of Rhode Islanders
Washington, DC – U.S. Senator Sheldon Whitehouse, Chairman of the Senate Finance Subcommittee on Taxation and IRS Oversight, today reminded Rhode Island parents that the expanded Child Tax Credit payments included in the American Rescue Plan will start landing in bank accounts tomorrow. The improved Child Tax Credit is poised to assist hundreds of thousands of Rhode Islanders.
“After a really challenging stretch for Rhode Island families, Democrats have marshalled the full power of the federal government to get an entire generation of children off to a stronger start,” said Whitehouse. “The expanded Child Tax Credit represents a fundamental shift in the level of federal support available to help families get into the middle class and stay there. I’m going to fight to make these changes permanent.”
Whitehouse, who serves on the Senate Budget Committee, helped craft the budget plan agreed to by Democratic members of the Committee last night. The plan would allow for the extension of the expanded Child Tax Credit beyond this year.
The American Rescue Plan increased the Child Tax Credit to $3,600 per child under the age of six and $3,000 per child ages six through seventeen for 2021. Families will get the full credit if they make up to $75,000 for a single filer, $150,000 for a couple, or $112,500 for a family with a single parent who files as a head of household. The law temporarily makes the credit refundable, meaning families will benefit even if they owe no income taxes.
Additionally, the Child Tax Credit will be sent to families in monthly installments to provide consistent support. Parents will receive payments up to $300 per month for children up to five years old and $250 per month for children ages six to seventeen. The rest of the credit will be included in tax refunds during the filing season next spring.
The IRS estimates that the families of 90 percent of children in the U.S. will begin receiving monthly payments without any further action required. The expanded Child Tax Credit is projected to cut child poverty in half and reduce overall poverty by a third. Parents who are unsure whether they qualify can use a new tool on the IRS website to find out.
The American Rescue Plan, which was passed by Democrats in Congress, was signed into law by President Biden in March.