Monthly Child Tax Credit checks are coming July 15. Here’s what parents need to know!

We all know what a difficult year it has been for parents across Massachusetts and the entire country. This week, some welcome relief is on the way.

Starting this Thursday, July 15, most families will be eligible to begin receiving monthly payments – known as Child Tax Credits – from the federal government. The Child Tax Credit payments were established under the Child Tax Credit expansion passed by Congress and President Biden this Spring as part of the American Rescue Plan.  We at Neighborhood Villages have applauded this child tax credit expansion because it is an immediate tool that families can use to help with the costs of raising a child – especially the exorbitant price of child care.

Here’s what you need to know about who is eligible for these tax credits and how to receive them!

Who is eligible for the Child Tax Credit payments? 

Single parents with incomes up to $112,500 and couples with incomes up to $150,000 are eligible to claim the full benefit. For one year, eligible families will receive:

• $300 per month for each child under 6; and 

• $250 per month for each child between 6 – 17.

The Child Tax Credit is refundable; meaning, lower-income families who are not required to pay taxes can still receive these payments – and are encouraged to claim them.

To qualify for the payments, you (and your spouse if you filed a joint return) must have:

• Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or

• Given information in 2020 to receive the Economic Impact Payment using the Non-Filers tool; and

• Have a main home in the United States for more than half the year or (or filed a joint return with a spouse who did so); and

• A qualifying child who is age 17 or younger at the end of 2021 and who has a valid Social Security number; and

• Made less than certain income limits.

For more information on eligibility, visit here. 

Do my children qualify for the Child Tax Credit?

To qualify, a child must be younger than 17 and have a Social Security Number.

I’m an immigrant, am I still eligible to receive payments?

Parents of eligible children are not required to have a Social Security Number to be eligible to receive Child Tax Credit payments, but they must have an Individual Taxpayer Identification Number (ITIN) to claim the credit for their eligible children. 

What if I didn’t make enough money to file a tax return? Am I still eligible for these payments?

Likely, yes. You should visit this page and use the IRS tool to fill out information as a Non-Filer. 

What do I need to do to receive these payments?

If you filed returns for 2019 or 2020, or if you signed up to receive a stimulus check from the IRS, you should receive these payments automatically. If you did not file a tax return or are not required to file a tax return, you should visit this page and use the IRS tools to submit your information. 

How will I receive my payments?

Many people will receive their payments automatically through direct deposit. Families may also receive these payments through checks. To confirm you are enrolled or to manage your payments, you can visit here. 

Will these payments count as income?

No. Child Tax Credit payments do not count as income for any family. They will not affect eligibility for federal benefits like Medicaid, SNAP and other safety net programs.

How long will these payments last?

These payments run every month through the end of 2021. Families will receive a monthly payment from July – December. They will receive payment for the remaining six months’ worth of the credit when they file their taxes in 2022.  

While the expansion of the Child Tax Credit for one year is welcome news, we need to make this a more permanent solution. It’s why we are urging Congress to extend the Child Tax Credit beyond 2021, as President Biden has proposed

Are there places I can go for help claiming these payments?

There are many organizations working to help families who are having trouble accessing these funds. 

 A representative from our Neighborhood partner, Horizons for Homeless Children, shared: “Our Family Advocates have been doing great work in supporting our families 1:1 to help them access all the stimulus-related benefits they can. To further support the Family Advocates as much as possible, we’re partnering with Greater Boston Legal Services to pilot a “train the trainer” overview for helping non-filers access the child tax credit.” 

Providers and parents alike can visit the Greater Boston Legal Services website to learn more:  https://www.findyourfunds.org/partners.

Does this solve America’s child care crisis?

Not even close! While families can use their payments to help cover the cost of child care, the Child Tax Credit doesn’t even come close to solving the solving the child care crisis. We need comprehensive child care reform AND supports like the Child Tax Credit to help set families up to thrive.

Our child care system is too expensive, too complicated, and is leaving far too many families and children behind. We need transformational reform to fix it.

The good news is we already have a solution proposed in Massachusetts, the Common Start legislation. And hopefully help is on the way at the federal level.

We need you to be active in urging action. Join us. Join the movement.

For more information on all of this, you should visit childtaxcredit.gov.