Center for American Progress

The Child Tax Credit will keep millions of children out of poverty
In the News

The Child Tax Credit will keep millions of children out of poverty

Areeba Haider and Galen Hendricks write about the importance of the child tax credit.

Authors

  • Areeba Haider
  • Galen Hendricks

It’s a big day for more than 39 million families with children across the country. Today, the IRS will begin issuing the first-ever monthly installment of a newly expanded Child Tax Credit. The Child Tax Credit will cut child poverty significantly, meaningfully addressing racial disparities and vastly improving the lives of millions of children.

Though the Child Tax Credit has long been part of the tax code, the Biden administration significantly improved and expanded it in the American Rescue Plan earlier this year. Families with older children will now receive annual credits of $3,000 rather than $2,000, and the credit is extended to 17-year-olds for the first time. Families with children under the age of 6 will receive $3,600 to account for extra expenses during some of a child’s most formative years. For the first time, families will have the option to receive their benefits monthly rather than as an annual lump sum to account for the ongoing expenses of raising children. Most importantly, the new Child Tax Credit finally extends full eligibility to the poorest families, who previously found themselves shut out or shortchanged by the program’s cruel “phase-in” structure because their incomes were considered too low to benefit from the program the way other families could.

The above excerpt was originally published in The Hill. Click here to view the full article.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Authors

Areeba Haider

Research Associate

Galen Hendricks

Research Associate