Expanded Child Tax Credit

Published 9:00 am Sunday, September 18, 2022

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Even though the tax season has ended, it’s not too late for parents to file and claim all eligible benefits!

  • If families have not yet filed taxes to receive their full 2021 Child Tax Credit, there’s still time.
    • This year’s tax filing deadline will be approaching soon; families who have not yet filed should do so as soon as possible.
  • Thanks to the American Rescue Plan, the Child Tax Credit was increased and expanded in 2021, and most families are eligible to receive the credit for their children.
  • For families with qualifying children who had not turned 18 before the start of this year, the 2021 Child Tax Credit is $3,000-$3,600 per kid, based on their age.
  • For families that have not yet filed taxes this year:
    • If they received part of their Child Tax Credit as monthly payments last year (typically half of the total credit amount the IRS estimated they would be eligible for), they can still get their remaining Child Tax Credit by filing;
    • If they qualify for the Child Tax Credit but did not receive monthly payments last year, they can still receive the full credit amount ($3,000-$3,600 per kid) when they file.
    • For those who are required to file tax returns, the deadline is October 17.
  • Families must file a tax return to receive the full Child Tax Credit. ChildTaxCredit.gov can help.
  • Go to ChildTaxCredit.gov to help determine if you are eligible for the 2021 Child Tax Credit or find free resources to help you file for the credit.

BENEFITS FOR FAMILIES

To support families as students return to school, the Administration is spotlighting two programs: the expanded Child Tax Credit (CTC), which provides payments to eligible families with children, and the Affordable Connectivity Program (ACP), which helps eligible families access high-speed internet.

The American Rescue Plan (ARP) expanded the CTC from $2,000 per child to $3,600 for children under age 6 and $3,000 for children ages 6 to 17.  While many received advance monthly payments of the CTC between July and December 2021, families must file a tax return for the 2021 year to receive the remaining amount of their CTC.  Also, by filing a tax return, families that did not receive advance payments in 2021 (such as those who welcomed a baby in 2021 or those who have not filed taxes in recent years and did not use the non-filer portal) may still receive the full CTC.  With only weeks remaining to file a tax return this year, to claim the full amount of 2021 CTC in the easiest and most secure way, families should file their taxes electronically as soon as possible.  ChildTaxCredit.gov offers features to help families file their taxes and access the remainder of the expanded CTC.

The Bipartisan Infrastructure Law (BIL) established the Affordable Connectivity Program to provide eligible households up to $30 a month off internet bills (or $75/month on Tribal lands), as well as a one-time $100 discount off a connected device. The Biden-Harris Administration secured commitments from internet service providers across the country to offer high-speed plans that are fully covered – meaning millions of families can now get high-speed internet without paying a dime. An estimated 40% of households in the country qualify for ACP, including families with a household income at or below 200% of the federal poverty level ($55,500 for a family of four), as well as households participating in certain federal programs (without regard to income). Among others, households where at least one member receives Free or Reduced Price School Lunch (including from one of the over 33,000 Community Eligibility Provision schools), a Pell Grant, Medicaid, SNAP, or WIC qualify.  GetInternet.gov is a one-stop shop to check eligibility and sign up. The Department of Education also provides a “Back to School” ACP Toolkit with ready-to-use Backpack Flyer that schools and community partners can use to help students and their families sign up.