What you should know about this year’s expanded Child Tax Credit

This month, the first payment of the expanded Child Tax Credit will roll out, benefitting nearly 1.5 million kids in Washington.

The American Rescue Plan Act signed into law in March 2021 made three important changes to the Child Tax Credit:

1. Increased the credit to $3,000-$3,600 per child;
2. Expanded to include families with little or no income; and
3. Will pay half the credit out in advanced monthly payments starting July 15!

The expansion of the tax credit is estimated to lift half of children across the U.S. out of poverty by helping parents and caregivers pay for household needs like rent, food, bills, and school supplies.

During a press conference at the Tukwila Community Center on July 8 put on by Poverty Action, Congresswoman Suzan DelBene, MomsRising, and Northwest Harvest, Shereese Rhodes, a member of MomsRising and Governor Inslee’s Poverty Reduction Work Group Steering Committee, said the expanded tax credit will help her family pay for gas to get to health appointments.

I’m a mom of two that I gave birth to but, I also feel like I’m a mom of many. And I learned that through this pandemic. A lot of families already were struggling before, we struggled even harder during, and we’re going to struggle after. -Shereese Rhodes

The monthly installments of up to $300 per child through December 2021 will make up half the credit amount with the remainder to be refunded when eligible parents file their 2021 taxes in early 2022. Currently the expansion is only for the 2021 tax year but, advocates and some members of Congress are fighting to expand the Child Tax Credit permanently. A permanent expansion would benefit 87% of kids in Washington. The increased amount and inclusion of families with little to no income offers some economic security to meet basic needs and cover unexpected emergencies. As Congresswoman DelBene said during last week’s press conference, “kids don’t grow up in a year or five years, so we need to make sure families know it’s going to be there for them throughout their child’s life.”

For more information on eligibility and making sure your family is signed up, visit www.ChildTaxCredit.Gov.

Also check out these FAQs put together by MomsRising.