Millions set to receive more child tax credits | Top Stories

In three weeks, millions of New Yorkers and Americans with children under the age of 18 can receive monthly payments under the federal child tax credit, expanded in Congressional’s latest coronavirus relief package.

The nationwide child tax credit program was expanded under the $ 1.9 trillion COVID-19 stimulus American Rescue Plan, which President Joe Biden, a Democrat, went into effect on March 11.

“This is the greatest poverty reduction measure in decades,” said US Senator Kirsten Gillibrand on Wednesday afternoon during a virtual press conference about the tax credit.

The first child tax credits will be given to low and middle income families from July 15th and will be sent out monthly until December.

Families receive monthly payments of between $ 30 and $ 250 for each child ages 6-17 and up to $ 300 per month for children under 6. The expanded child tax break is expected to benefit approximately 39 million households, including more than 3.5 million children under the age of 18 in New York, according to the Center on Budget and Policy Priorities.

The program could help reduce child poverty in the country by more than 45%, Gillibrand said.

The federal economic stimulus package made all children under the age of 18 eligible for funding from the typical limit of a child under 17.

The American Rescue Plan increased credits from $ 2,000 per child to $ 3,600 per child under 6 and $ 3,000 per child under 18.

For example, parents with two children under the age of 6 are eligible for up to $ 7,200 annually in credit.

The Tax Policy Center estimates that more than 90% of families with children are paid more than $ 4,300.

“These extended loans can make a real difference for families across New York and help pay the bills people need to run their families,” said Gillibrand. “Whether it’s a rental bill or a utility bill or food on the table, make sure the kids have the clothes they need for after-school activities.”

Parents of a child who live in separate households receive credit based on how they register the child as subject to their income tax.

New Yorkers who have filed their 2019 or 2020 taxes with the IRS will automatically receive child tax credits based on their filings.

US undocumented parents with children who have a Social Security number are eligible for credit, which can be requested by providing your unique tax identification number.

“Even if you haven’t made any income, you can still get the full credit,” said Gillibrand. “All in all, these changes mean that 87% of children in New York, more than 3.5 million children, will be eligible for the child tax credit.”

Funds are available to families in Puerto Rico and all US territories.

Individuals who have not earned sufficient annual income to collect taxes or have welcomed a new baby or child in 2021 must update their information online with the IRS at childtaxcredit.gov.

“If you are eligible, you should get these payments,” said the senator. “Talk to your friends and neighbors – make sure they know how to access it so we can make sure every family benefits. This is one of the best tools we have to fight child poverty in this country and I will keep fighting to make it permanent. “

New York families are receiving a total of $ 7.03 billion in aid and an estimated 87% of children under the age of 18 in the state will benefit from it.

State Democratic Party chairman Jay S. Jacobs released a statement on Wednesday about the expanded child tax credit to help raise awareness about the program.

“After the election, it’s important to remind all New Yorkers to make sure New York parents are aware of the historic increase in child tax credit from the US bailout and how it will benefit their families,” said Jacobs. “… Thanks to President Biden and the New York Democrats, the American Rescue Plan will soon bring great tax breaks to working families with children through a historic expansion in child tax credits, and families will see these checks in their mailboxes next month. Despite opposition from NY Republicans like [21st District U.S. Rep.] Elise Stefanik, the extended child tax break will lift 242,000 children out of poverty here in New York, help strengthen financial security and stimulate economic growth in our state. “

Senator Gillibrand would have supported the expanded tax credit regardless of the coronavirus pandemic, she said.

“The COVID crisis has highlighted systemic injustices and economic inequality in ways that we have never understood or seen so clearly before,” added Gillibrand. “It is because of the COVID crisis that we are so aware of the systemic inequality in our economy and that is how we can ensure that we are tackling child poverty that existed before COVID and was really exacerbated during COVID.”

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