Since July, Treasury and the IRS have delivered roughly $77 billion dollars in direct payments to families
WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service announced today that more than $15 billion in payments were made to families that include roughly 61 million eligible children as a part of the fifth monthly payment of the expanded and advanceable Child Tax Credit included in the American Rescue Plan. Since the first payments were sent in July, Treasury and the IRS have delivered roughly $77 billion to families across the country. Eligible families received a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17.
“The Child Tax Credit is giving families across America the flexibility to pay for household essentials, school supplies, and other childcare needs,” said Secretary of the Treasury Janet L. Yellen. “This tax relief is making a meaningful difference in the lives of millions of children, and it’s crucial for Congress to extend it by passing President Biden’s Build Back Better agenda so families can continue to benefit.”
Within weeks of the first payments going out, the Census Bureau’s Household Pulse Survey data showed that 55% of middle-income families spent their Child Tax Credit payments on food, more than 26 percent spent it on clothes, and 23 percent spend it on costs related to school and afterschool. A recent national survey from researchers at the Social Policy Institute found that 42% planned to use at least some of the credit to start or grow a college fund for their child and 24% planned to use their Child Tax Credit payments for childcare expenses. About half of middle class parents with kids report spending some of their Child Tax Credit on their rent, mortgage, utilities, or a car payment, according to the Census Bureau’s Household Pulse Survey.
Unless Congress acts to extend the advance Child Tax Credit, Treasury and the IRS will deliver the final monthly payments on December 15th. Absent an extension, the families of roughly 61 million children currently benefiting from this reliable relief will once again face tighter monthly budgets and difficult choices to make ends meet. And the families of 26 million lower-income children who are now receiving the full credit for the first time would once again receive less than the full credit because their incomes are too low. In the meantime, non-filer families can continue to sign-up for advance Child Tax Credit payments until 11:59pm ET today, November 15, 2021, through Code for America’s bilingual, mobile-friendly tool. Families who successfully sign-up before the deadline will receive their payments in December as a lump sum. Non-filer families that haven’t signed up by the deadline can still claim their full Child Tax Credit during next year’s tax season.
Over the past few months, Treasury and the White House have partnered with federal agencies, state and local governments, national organizations, and community groups to train thousands of people across the country to serve as navigators. These navigators are trusted messengers within their communities, providing approachable, hands-on expertise to non-filers. The White House and Treasury have conducted more than 40 navigator trainings to date, which provided training for more than 6,600 potential Child Tax Credit navigators in English and Spanish. The IRS also embarked on an extensive communications and education effort to reach non-filers, with a special focus on reaching underserved and non-English speaking communities. As part of this ongoing effort, the IRS hosted free tax preparation days in nearly 30 cities across the country in June and July, has participated in more than 250 partner events on CTC, developed online materials and toolkits, and in recent weeks sent letters to potential non-filers detailing how to sign up for advance payments of the Child Tax Credit and the 3rd round of Economic Impact Payments.
Go to Source