President Joe Biden is pushing for the permanent reinstatement of the Child Tax Credit policy, highlighting its importance for economic growth and accessible child care.
Speaking during a visit to Nevada, Biden emphasized the positive effects of the American Rescue Plan, which expanded the Child Tax Credit to assist low-income families during the COVID-19 pandemic. With the program having lapsed due to the lack of congressional renewal, its revival is now a key focus.
Table of Contents
The Economic Importance of Child Care
Biden emphasized the economic advantages of affordable child care, saying, “When people don’t have to worry about their child’s care while they work, the economy grows.” He highlighted how the expanded Child Tax Credit had significantly reduced child poverty, especially in Black, Latino, Asian, and tribal communities, by providing families with $300 per child each month.
| Low Income Health Care Card Australia |
| 500 Affordability Cheque |
| Australia Energy Relief Grant 2024 |
| Bench Craft Company Settlement 2024 |
| First Batch Of Debit Cards For Ssi And Ssdi |
Payment Details
Starting July 15, 2024, eligible families will receive monthly payments based on the age of their children:
- $300 per month for each child under six years old.
- $250 per month for each child aged six to seventeen.
Payments will be made on the fifteenth of each month. If the 15th falls on a weekend or holiday, payments will be made on the next business day. This regular payment schedule is designed to provide families with predictable financial support, helping them better manage their budgets and meet their needs.
Payment Schedule
Payments will be delivered on the fifteenth of each month.
- July 15, 2024
- August 15, 2024
- September 15, 2024
- October 15, 2024
- November 15, 2024
- December 15, 2024
How to Check Your CTC Payment Status
Step 1: Visit the IRS Website or Open the IRS2Go App.
Step 2: Enter Your SSN or ITIN.
Step 3: Select Your Filing status.
Step 4: Enter the exact Payment Amount.
Step 5: Wait for Processing.
Payments are typically issued within 21 days after the IRS receives your tax return.
Impact of the Child Tax Credit
The Child Tax Credit was instrumental in reducing child poverty to historic lows in 2021. However, its expiration led to a significant rise in child poverty rates in 2022, as reported by the U.S. Census Bureau. In response to the federal government’s lack of action, some states have taken matters into their own hands to continue providing support.
According to the Center on Budget and Policy Priorities, 14 states have introduced their own child tax credit programs. Additionally, 31 states, along with the District of Columbia and Puerto Rico, have implemented versions of the federal Earned Income Tax Credit. This growing trend highlights the widespread acknowledgment of these programs’ importance in aiding families.
Proposals for Expansion
The Biden Administration has strongly supported making the Child Tax Credit a permanent part of American policy. In March, the administration proposed increasing the credit to $3,000 per child for those aged six and older, and to $3,600 for children under six. This proposal aims to deliver significant financial relief to families and further cut child poverty rates.
The administration estimates that fully restoring the Child Tax Credit expansion could lift 3 million children out of poverty and reduce taxes by an average of $2,600 for 39 million low- and moderate-income families, benefiting 66 million children in total. This potential impact highlights the extensive benefits of the policy and demonstrates the administration’s commitment to reducing child poverty and supporting families.
The Need for Action
As child care expenses continue to climb, many families struggle to balance affordable care with employment. The Child Tax Credit provides essential financial assistance, helping families cover these costs and sustain a good quality of life. Continued government support for this and similar programs is crucial for the well-being of families and the overall health of the economy.
| State | Child Tax Credit Enacted | Earned Income Tax Credit Versions |
|---|---|---|
| California | Yes | Yes |
| Colorado | Yes | Yes |
| Connecticut | Yes | Yes |
| Maine | Yes | Yes |
| Maryland | Yes | Yes |
| Massachusetts | Yes | Yes |
| New Jersey | Yes | Yes |
| New Mexico | Yes | Yes |
| New York | Yes | Yes |
| Oklahoma | Yes | Yes |
| Oregon | Yes | Yes |
| Rhode Island | Yes | Yes |
| Vermont | Yes | Yes |
| Washington, D.C. | Yes | Yes |
| Puerto Rico | Yes | Yes |
| Other states (not listed) | No | Yes |
Conclusion
The introduction of $300 monthly payments for children under six and $250 for older children represents a significant enhancement of the Child Tax Credit program. This new initiative aims to provide consistent financial support to families, reduce child poverty, and contribute to economic stability.
To make the most of the new CTC program, families should ensure accurate tax filing, update their information with the IRS, and stay informed about any changes to the program. By following these steps, families can maximize their benefits and effectively manage their financial needs.
As the landscape of child support continues to evolve, the new permanent Child Tax Credit serves as a crucial tool in supporting families and addressing the challenges of raising children in today’s economy.
FAQs
How do I apply for the Child Tax Credit?
You don’t need to apply separately for the CTC. Eligibility is determined based on the information provided in your tax return. Ensure your tax return is filed accurately and on time with all relevant details about your children.
How can I check the status of my CTC payments?
You can check the status of your CTC payments and update your information using the IRS Child Tax Credit Update Portal. This online portal allows you to track payments and make necessary updates to your personal information.