Payments expected to begin for families in July
Congressman Brian Higgins announced improvements to the Child Tax Credit included in the American Rescue Plan will benefit nearly 400,000 children in Western New York.
He said, “The pandemic has forced people out of work, kept children home from school and left families struggling. National economic recovery will require a focus on strengthening our families, neighborhoods and communities. By increasing and expediting payment of the Child Tax Credit, help for families is on the way.”
The American Rescue Plan approved by Congress and signed into law increases the Child Tax Credit from $2,000 a child to $3,000 a child and to $3,600 a child under age 6. Instead of claiming the credit on annual taxes, the legislation allows for the credit to be issued in advance in the form of monthly payments of up to $300 per child to families. The Internal Revenue Service commissioner indicated payments are scheduled to begin in July.
Single filers earning up to $75,000, head of household filers earning up to $112,500, and joint filers earning up to $150,000 would receive the full advance payment of the child tax credit, with payments phasing down for families earning above those income thresholds.
In Higgins’ district alone, 136,400 children – 91% of the children in the district – will benefit from the monthly Child Tax Credit checks. Additionally, the expanded and improved Child Tax Credit lifts 9,500 children in the district out of poverty, and 3,800 children out of deep poverty. The average benefit for 42,700 households in the district expected to receive the credit is $2,900 annually.
In addition to the 136,400 children impacted in NY-26, the measure will benefit 126,800 children in NY-27, which includes portions or all of Erie, Niagara, Monroe, Ontario, Orleans, Genesee, Wyoming and Livingston counties; as well as 132,4000 children in NY-23, which includes Chautauqua and other Southern tier counties. In total, an estimated 395,600 children in the three Western New York congressional districts will benefit.
According to the Institute on Taxation and Economic Policy estimated 83 million children nationwide live in households that will benefit from the Child Tax Credit provision. A Columbia University study found this policy will cut the child poverty rate in the U.S. in half.
President Joe Biden is expected to include an extension of the Child Tax Credit program in his American Families Plan package.