The Biden-Harris administration is announcing a Child Tax Credit (CTC) Awareness Day on Monday, June 21 to ensure eligible parents know about the American Rescue Plan’s historic expansion of the Child Tax Credit and can access this new resource. As key partners with the federal government in designing and implementing social services and anti-poverty programs, county governments are uniquely positioned to perform education and outreach to connect vulnerable residents with the expanded CTC.
The American Rescue Plan Act of 2021 includes a historic temporary investment in the CTC, expanding both its size and its eligibility guidelines in 2021 and offering a new delivery option in the form of advance monthly payments. As a result, an estimated 27 million children will qualify for new levels of direct income support, including many whose families typically do not earn enough annual income to file taxes. Estimates suggest that the expanded CTC could lift nearly 5 million children out of poverty in 2021, which would represent an almost 50 percent reduction in the child poverty rate, a key county priority. However, eligible families must file for the credit for this impact to be realized.
The IRS estimates that almost 90 percent of children in the United States are slated to begin receiving monthly payments without any further action required. Other eligible families, such as those who did not file 2019 or 2020 tax returns, can now sign up to receive monthly CTC payments beginning this summer by utilizing the new Internal Revenue Service (IRS) non-filer portal.
The White House has invited county leaders to participate in the June 21 CTC Awareness Day to raise awareness and ensure community-based organizations, social service employees and other key stakeholders can easily connect eligible residents with the expanded CTC. NACo has assembled resources for county leaders in a toolkit that can be accessed here, and a new White House Child Tax Credit landing page with details and shareable materials can be accessed here.
NACo supports expansions to the CTC to ensure all families can benefit from its positive impact on employment, earnings and economic independence. To learn more about the CTC awareness day and avenues for county officials to participate, join NACo’s National Membership Call with the White House on Thursday, June 17 at 1 PM. Click here to register!